ANZ cuts $19 million in executive bonuses following bond scandal

ANZ Group Reduces Executive Bonuses Amid Overhaul

Australian bank ANZ Group has made significant cuts to executive bonuses, totaling over A$30 million (about $19 million). This move comes as Commissioner Nuno Matos implements substantial changes within the institution.

In its annual report published on Monday, the bank characterized the previous year as “eventful and difficult,” noting adjustments to executive salaries in light of regulatory settlements and decreased profits.

Former CEO Shane Elliott sold A$13.5 million worth of shares following a bond-rigging scandal and issues related to workplace culture during his time leading the bank. ANZ, which ranks as the fourth-largest financial institution in Australia by market cap, indicated that Mr. Elliott bore “ultimate responsibility” for the regulatory troubles that tarnished its image. He exited the bank earlier this year after Matos took the helm.

In September, ANZ reached a settlement with the Australian Securities and Investments Commission, agreeing to pay a fine of A$240 million over allegations that traders had manipulated bond sales.

Former retail head Maile Carnegie forfeited A$4.4 million in bonus shares, while Anthony Strong, the former head of strategy and transformation, lost A$1.16 million. The bank mentioned, “The board has decided that some or all of the shares will vest in November,” adding that those affected will forfeit their rights by December 2025. This approach aims to maintain a fair outcome.

Matos, who joined in May with a compensation package potentially reaching A$6 million, has opted to waive a short-term bonus of nearly A$1 million in 2025 to “lead by example.”

Following his appointment, Matos has laid out plans to restructure the bank, including job cuts of 3,500 permanent positions and 1,000 contractors. This strategic review is intended to help ANZ better compete with larger rivals.

“The results we reported today indicate that our franchise is strong, but we need to take action,” Matos stated.

The only short-term bonuses for 2025 were awarded to Antonia Watson, who heads the New Zealand division, and other senior staff members who were in temporary roles until a permanent replacement was confirmed.

Investment bank analyst Matt Wilson commented on the bank’s performance, noting that while there are efforts to lower costs, driving revenue growth remains a persistent challenge. “We are now looking forward to execution,” he added.