ANZ cops first strike but with smaller ‘against’ vote than NAB and Westpac

ANZ has joined two of its rivals in being stung by a landmark first strike, but its “no” vote has undershot Westpac and NAB.

ANZ Chairman David Gonski at the ANZ bank AGM in Sydney, Tuesday, December 19, 2017. (AAP Image/Ben Rushton) NO ARCHIVING

ANZ Bank has joined two of its rivals in being stung by a landmark first strike against its 2018 pay report, but investors delivered a much smaller rebuke.

In a release to the ASX after 5pm (AEDT), ANZ (ANZ) revealed 33.76 per cent of shareholders voted against the remuneration report at the bank’s annual general meeting in Perth, surpassing the 25 per cent required for a strike.

In a much bigger shareholder revolt at NAB’s AGM in Melbourne, the bank’s board suffered a more than 80 per cent vote against its remuneration report, while last week Westpac got a 64.2 per cent strike.

All of the big four banks have now taken a whack in recent years, with Commonwealth Bank slapped by a wave of investor anger two years ago when almost 51 per cent of shareholders voted against its remuneration report. However it averted a strike in 2017 and at its most recent AGM in November this year.

Addressing the strike against ANZ’s pay report Mr Gonski told the AGM the bank would continue to seek out “further alignment” next year.

“The board acknowledges the very real concerns of those who have voted against the report and I assure you we will continue to work hard in 2019 to ensure further alignment between compensation and shareholder interests.

“We have been making changes to remuneration for some years, including significantly reducing the compensation paid across the group.”

The banks are under fire given a string of scandals uncovered at the Hayne royal commission and as investors want executives to be more accountable for the failings.

“I want to assure you, we at ANZ, are not waiting for the Commission’s final report before taking action,” Mr Gonski said in his speech.

“We acknowledged directly to the Commission the situations where we believe our conduct has not lived up to the standard expected of us.

“We have taken steps to acknowledge accountability, including the reduction of executive remuneration, and we have sped up efforts to compensate customers.

The Commission’s interim report only strengthened our resolve to make ANZ simpler and better able to serve our customers.”