ANZ Executive Leadership Forgoes Short-Term Bonuses Amid NFR Matters
In a recent development, ANZ’s executive management team has decided to forgo their short-term bonuses for the fiscal year 2025. This decision, according to the institution, was taken in recognition of their collective accountability for non-financial risk management, also referred to as ‘NFR matters’ throughout the company’s 2025 remuneration report.
Details of the NFR Matters
The NFR matters that influenced this decision included a settlement with ASIC, the imposition of a Court Enforceable Undertaking with APRA, and the findings from independent reviews into the root causes regarding NFR management and the 2024 Markets trading issues.
These issues and their subsequent reputational and financial impacts were among the significant factors considered by the board in its deliberations. The board was also mindful of the feedback received from shareholders in 2024, when the company experienced a strike against its Remuneration Report.
Feedback and Consultation with Shareholders
According to the remuneration report in the 2025 ANZ annual report, the chairman of the remuneration committee and the board chair held numerous meetings with shareholders throughout 2025, to better understand the key drivers behind their voting decisions. The board expressed appreciation for the candid feedback received during these consultations and pledged to incorporate this into their decision-making process for 2025.
Nuno Matos Leads by Example
Leading by example, ANZ’s relatively new CEO, Nuno Matos, proposed a 0% short-term bonus for himself, reflecting his commitment to the ANZ team. The board approved this proposal and also determined that a 0% short-term variable remuneration (STVR) was appropriate for the current and former Australian based executive leadership team (excluding two executives in acting roles), in recognition of their collective accountability for NFR management.
This decision means that neither ANZ’s current nor former CEO, Shayne Elliott, received any STVR for the year.
Conclusion
The withholding of short-term bonuses for ANZ’s executive leadership team underscores the institution’s commitment to addressing non-financial risk matters. It also demonstrates the extent to which executive remuneration is tied to the management of non-financial risks and the importance of shareholder feedback in the bank’s decision-making process.
For more details, see the original report Here.
