ANZ Bank hits leadership team where it hurts, cancels $33.4 million in bonuses

ANZ Bank’s board has cancelled $33.4 million worth of bonuses for current or former senior leadership team members after their failures in overseeing a horror run of regulatory fines and operating blunders.

On Monday, the bank posted a 14 per cent fall in cash profit to $5.79 billion for financial year 2025 as it absorbs a $1.1 billion financial hit from years of regulatory problems.

The bank’s new executive Nuno Matos said staff must “absolutely respect” the board’s decision to cancel management’s financial windfalls to focus on a future that delivers for customers and shareholders.

“The board has delivered its outcome in terms of compensation and we have to respect absolutely the board’s decision,” Mr Matos said. “(The bonus cancellation decision) is very much aligned with the shortcomings of the company and the shortcomings on non-financial risk management.”

The biggest financial loser from the board’s decision is former chief executive Shayne Elliot, who retired in July 2025 after nearly a decade in the top job.

Mr Elliott is being forced to give up short and long-term incentives in cash and shares worth $13.5 million.

The former Head of Retail Banking, Maile Carnegie, is losing $4.4 million worth of payouts, with former Head of Technology Gerard Florian, and Head of Strategy and Transformation, Antony Strong, losing around $3 million between them.

“The board carefully weighed up a range of factors in the deliberations, including the impacts of a number of matters,” said Holly Kramer the bank’s chair of its People & Culture Committee. “These included a settlement with ASIC, the imposition of a Court Enforceable Undertaking with APRA, and the findings from independent reviews into root causes regarding non-financial risk management.”

Executives to wear the pain

The aggressive bonus cuts come ahead of ANZ’s annual general meeting in December, when chairman Paul O’Sullivan will seek to avert a second consecutive shareholder vote against executive pay levels.

On Monday afternoon investors appeared to welcome the bonus cut news as ANZ shares rose 3 per cent to a record intra-day high of $37.96.

Mr Matos will give up a potential short-term bonus of $975,000 for his time as CEO during 2025 and said he believed this was the right example to set even if the historic failures did not happen under his leadership.

“Now we want to execute our strategy and improve our non-financial risk framework which in common language means delivering better outcomes to customers which is at the centre of our strategy, ” he said on Monday.

Aside from Mr Matos, a total of five other current senior leadership executives have been forced to give up short or long-term incentives in cash or shares. The biggest loser among them, is Mark Whelan the bank’s Group Executive for Institutional Banking who has lost $3.5 million.

While chief financial officer, Farhan Faruqi, has been required to sacrifice $1.75 million in discretionary incentive payments.

“The Board considers that the major reductions are a demonstration of a strong accountability culture and is committed to continuing to clearly link remuneration outcomes to performance,” said Ms Kramer.

In September, ASIC announced ANZ had agreed to pay record fines totally $240 million for widespread misconduct and operating failures across both its institutional and retail banking operations. In total, ASIC has now taken action against ANZ 11 times in just over the past 10 years.

ANZ profits fall

On Monday, as part of its full-year profit report the bank revealed total operating expenses surged 20 per cent, versus the prior financial year, to $12.88 billion.

The bank will pay a final dividend of 83 cents per share for the six months to September 30, which is flat on the prior half-year period to take full-year dividends to $1.66 per share.

Mr Matos declined to provide specific financial guidance for 2026.