The CEO of Australia’s No. 4 bank ANZ, Shayne Elliott, has given up a long-term performance bonus worth A$3.2 million ($2 million) amidst shareholder backlash related to bond-trading irregularities. The company is currently facing regulatory investigations into its handling of a 2023 government bond issue. The bond-trading irregularities have led to an Australian Securities and Investments Commission (ASIC) probe.
Elliott’s bonus was initially awarded, but shareholder adviser groups had indicated they would support it by a narrow margin of 50.1% to 49.9%. However, ANZ’s chairman, Paul O’Sullivan, announced that Elliott would be giving up the bonus “in recognition of shareholders’ views and to limit the impact on the bank.”
The news comes as ANZ is facing another challenge in the form of an Australian Prudential Regulation Authority’s (APRA) recent decision to increase the amount of cash the bank must keep on hand, citing concerns about its non-financial risk management. The company is also preparing to integrate its A$4.9 billion acquisition of the bank assets of insurer Suncorp.
Meanwhile, ANZ’s shares were down 2.5% on Thursday, in line with other large lenders and the broader Australian market, following a decline in the U.S. Federal Reserve’s expected rate cuts in 2025.