ANZ CEO's Remuneration Move: A Signal of Responsibility

In a significant move that aligns with ANZ's broader compensation strategy and corporate governance principles, outgoing CEO Shayne Elliott has decided to forfeit his 2024 long-term variable remuneration (LTVR). This decision, estimated to be around AUD 2.5 million, comes amidst a challenging economic environment and the bank's focus on cost-cutting measures. Elliott's action demonstrates a commitment to ANZ's financial health and a deep understanding of the current economic climate.

Elliott's decision to forgo his LTVR, despite meeting performance targets, reflects ANZ's commitment to responsible remuneration practices. The bank's compensation strategy prioritizes long-term sustainability and shareholder value over short-term gains. This approach is in line with ANZ's corporate governance principles, which emphasize transparency, accountability, and ethical behavior. By forgoing his 2024 LTVR, Elliott sets a positive example for the broader financial industry, signaling a commitment to these principles.

This decision could have significant implications for the bank's future leadership. It comes amidst a broader trend of CEOs taking pay cuts or forgoing bonuses, with 40% of S&P 500 CEOs doing so in 2022 (Source: Equilar). By giving up his bonus, Elliott is signaling a commitment to shareholder value and aligning his compensation with the bank's performance. This could set a precedent for the incoming CEO, encouraging them to prioritize long-term growth and sustainability over short-term gains. Additionally, this decision may influence the bank's compensation structure, potentially leading to a more performance-based remuneration system for future leaders.



ANZ's response to regulatory pressures and industry trends in executive compensation is evident in Elliott's decision. In Australia, the Banking Executive Accountability Regime (BEAR) has introduced stricter accountability measures for senior executives, including potential penalties for misconduct. Additionally, there's a growing emphasis on aligning executive remuneration with long-term performance and stakeholder interests. Elliott's decision to forfeit his 2024 LTVR, despite meeting performance targets, signals ANZ's commitment to these principles and its responsiveness to regulatory pressures and industry trends.

In conclusion, ANZ's outgoing CEO Shayne Elliott's decision to forfeit his 2024 LTVR is a clear signal of responsibility and commitment to the bank's long-term success. This move aligns with ANZ's broader compensation strategy and corporate governance principles, and it sets a positive example for the broader financial industry. As ANZ looks to the future, this decision could have significant implications for the bank's leadership and compensation structure, further strengthening its commitment to responsible and sustainable business practices.