Outgoing ANZ chief executive Shayne Elliott forgoes $3m bonus

Outgoing ANZ chief executive Shayne Elliott has made a huge call on his monumental bonus amid drama over the bank’s controversial year.

Outgoing ANZ chief executive Shayne Elliott has decided to forgo a $3.2 million bonus after a major investor revolt at the bank’s annual general meeting on Thursday.

Nearly 40 per cent of shareholders voted against the bank’s executive pay scheme, marking the first AGM strike in six years and a sign of growing dissatisfaction with the bank’s recent performance.

The protest reflects the mounting frustration over what investors view as mismanagement and missteps within the organisation that some believe have damaged its reputation.

ANZ Chairman Paul O’Sullivan responded to the backlash, acknowledging the bank’s difficult year and the feedback from shareholders.

“As many shareholders are aware, our financial performance was overshadowed by issues related to our management of non-financial risks,” O’Sullivan stated.

“This made it difficult to judge our performance.”

ANZ has faced scrutiny from banking regulator APRA, which raised concerns over the bank’s culture and demanded an additional $250 million in capital after a bond trading scandal.

Outgoing ANZ chief executive Shayne Elliott has decided to forgo a $3.2 million bonus after a major investor revolt at the bank’s annual general meeting on Thursday. Picture: NewsWire / Arsineh Houspian

The ordeal involved the alleged overstatement of government bond values by over $50 billion.

ANZ’s delayed rollout of its Plus banking platform, which critics believe lags behind competitors, has also been a point of contention.

In response to the shareholder vote, Mr Elliott decided to forgo his massive long-term bonus.

“In recognition of shareholders’ views and to limit the impact on the bank, Shayne has decided to forfeit this year’s long-term variable remuneration,” said Mr O’Sullivan.

The move was praised by the Australian Council of Superannuation Investors (ACSI), with executive manager Ed John calling it a “positive step”.

ANZ has faced scrutiny from banking regulator APRA, which raised concerns over the bank’s culture and demanded an additional $250 million in capital after a bond trading scandal. Picture: NCA NewsWire / Luis Enrique Ascui

Protesters clash with ANZ over its climate and military funding

ANZ faced fiery questions from activists this week both before and during its annual general meeting.

Protesters from the pro-Palestine, climate and environment movements are angry over the bank’s financial ties to the world’s largest weapons company, Lockheed Martin.

According to the protesters, ANZ helped facilitate more than $US23bn ($A37bn) worth of bond financing for Lockheed Martin.

“ANZ must comply with international humanitarian law and end its funding of weapons manufacturers like Lockheed Martin profiting off the sale of arms and munitions to Israel, who are committing war crimes and genocide, as noted by Amnesty International and UN Special Committee,” Palestinian activist Amin Abbas said.

In a statement prior to the AGM, protesters said they also planned to be at the meeting as proxies to put questions directly to ANZ over funding military activities.

Mr O’Sullivan said prior to the meeting he was aware of potential issues with protesters and took provisions to protect shareholders.

“We took extra security measures to make sure we could safeguard everyone attending,” he said.

Protesters did not crash the meeting, although questions on military funding were asked to the board.

“We have a clear policy of not directly financing weapons, with the exception made for Australian and New Zealand governments,” Mr O’Sullivan said.

“We have a clear screening process so we know what our money is used for.”

ANZ also faced questions about funding large polluters, including oil and gas companies.

“We have committed to reducing our exposure to oil and gas over time. All those goals are consistent with the Paris agreement,” Mr O’Sullivan said.

ANZ announced a Statutory Profit after tax for the full year ended 30 September, 2024 of $6,535 million, down 8 per cent on the prior year.

Originally published as Outgoing ANZ chief executive Shayne Elliott forgoes $3m bonus