ANZ Shareholders Reject Remuneration Report for the Second Consecutive Year
In a significant move, shareholders of Australia and New Zealand Banking Group (ANZ) have voted down the bank’s remuneration report for the second year in succession. This decision was taken at the annual general meeting held in Sydney, indicating a strong stance against the bank’s remuneration policies.
Shareholders Vote Against Remuneration Report
Approximately 33% of the shareholders voted against the remuneration report. It is noteworthy that a vote of 25% or more is sufficient to constitute a ‘strike’. This indicates a significant level of dissatisfaction among shareholders regarding the bank’s remuneration policies.
Vote Against ‘Spill’ Motion
Following the vote on the remuneration report, shareholders also voted largely against a subsequent ‘spill’ motion. If this motion had been approved, it would have compelled all non-executive directors of the bank to face re-election. This move underscores the shareholders’ commitment to stability in the bank’s management.
ANZ Executives’ Pay Structure
Interestingly, none of ANZ’s Australia-based group executives, barring two in acting roles, received any short-term variable remuneration in the last year. This can be seen as an indication of the bank’s response to the ongoing challenges and criticism regarding executive pay.
ANZ Chair Responds to Shareholders’ Concerns
Responding to these developments, ANZ Chair, Paul O’Sullivan, addressed the annual meeting stating, “The board’s response this year has been appropriate and proportionate given the challenges faced.” He further added that the board retains the prerogative to make future adjustments where deemed appropriate.
ANZ’s Recent Regulatory Challenges
The vote against the remuneration report comes in the wake of ANZ’s recent regulatory challenges. In September, ANZ negotiated a penalty of $240 million in connection with two scandals impacting its institutional bank and two others related to misconduct in the retail bank. These events have underscored the need for a review of the bank’s governance and remuneration policies.
This article is based on information provided by Banking Day. You can read the original report Here.
