Former CEO sues bank for cutting his bonus payments
ANZ Bank has announced that it will defend its decision to cut former CEO Shayne Elliott's bonus payments after the executive's legal action against the move.
ANZ chairman Paul O'Sullivan said the company's board has been "very deliberate" in its assessment of remuneration outcomes.
"We are confident in our position and we will defend this matter vigorously," O'Sullivan said.
Elliott sued ANZ Bank in the Supreme Court of New South Wales over its decision to cut $13.5 million from his bonus payments after he retired.
"I have been left with no alternative other than to commence proceedings in the Supreme Court of New South Wales," the former CEO said in a statement quoted by ABC News.
"I will be seeking the earliest possible hearing of my claim before the court and am fully committed to see this process through."
ANZ Bank's position
But the bank said it is required under the Australian Prudential Regulation Authority's (APRA) Prudential Standard CPS 511 to design remuneration that "encourages prudent risk management" and and to link executive pay to performance and risk outcomes.
The board is also mandated to consider these matters when deciding to release unvested equity on an annual basis.
"In assessing remuneration outcomes this year, the board determined that no Australian-based group executive would receive short-term variable remuneration, excluding those in acting roles," the bank said in its statement.
"It also resolved that some of the long-term variable remuneration due to vest to Mr Elliott would be adjusted downwards to zero for 2025 and 2026."
Elliott retired as ANZ CEO earlier this year, with CEO Nuno Matos having taken over on 12 May 2025.
Under Elliott's tenure, ANZ admitted to widespread misconduct that led to $240 million in penalties, including a record $80 million penalty for unconscionable conduct, and $115 million in total penalties for three retail matters.
Matos said last month that the bank's executives have been held accountable for the failures under the APRA CPS 511 regulation.
"As CEO, allow me to be direct – the bank fell short of what is expected of us and, for that, I offer an unreserved apology," Matos said.
