The bank continued to charge fees to accounts of deceased customers, overlooked notices of hardship, and provided misleading information to clients. Meanwhile, ANZ executives received over $26 million in bonuses during the same three-year timeframe.
Shareholder groups are now looking ahead to December to determine if any bonuses will be reduced after ANZ faced a hefty $240 million fine due to widespread misconduct.
The financial sector union criticized the short-term bonuses awarded to 11 executives from 2021 through 2024, describing them as outrageous and “completely out of line,” especially as it prepares for the impending layoffs of 3,500 ANZ staff by next year.
The Green Party has also condemned these bonuses, calling it indicative of a flawed system, noting that the total payouts over three years have surpassed some of the monetary penalties imposed by the Australian Securities and Investments Commission (ASIC).
Former CEO Shane Elliott forfeited $3.2 million in long-term bonuses in response to shareholder unrest at last year’s annual meeting, yet his short-term bonus of $5.5 million remained intact over three years.
Other top executives received bonuses totaling $3.2 million, $3.1 million, and $2.8 million, respectively, over the same period.
“This is truly indefensible and completely misaligned with community expectations,” remarked FSU National President Wendy Streets.
She highlighted that “these payouts are tone-deaf and unwarranted, especially as ANZ lays off thousands to save money while apologizing for their failures.”
Corporate Bonuses Under Scrutiny
The ANZ situation exemplifies a broader trend where significant bonuses are awarded to executives despite public backlash and regulatory scrutiny regarding company actions.
In a similar vein, health insurer Boopa revealed it paid out $14.1 million in bonuses just before incurring a $35 million penalty for “unconscionable conduct.” Additionally, a CEO in the childcare sector received a $534,426 short-term bonus last year despite serious allegations against an employee.
Recently, ANZ admitted it had been slow to respond to numerous customer complaints—488 in total. The bank faced fines amounting to $240 million from May 2022 to September 2024, with some clients waiting over two years for assistance.
There was also a separate $25 million fine regarding misleading customers and another $10 million penalty for violations related to credit laws.
Over the previous financial year, eight senior executives at ANZ shared short-term annual bonuses worth approximately $8.24 million, averaging $1 million each.
In the following fiscal year, ANZ is set to face additional penalties, including a $15 million fine for misleading customers about accessible account funds and $900,000 for breaching continuous disclosure obligations.
However, despite all the scrutiny and repercussions, short-term bonuses reaching $10.5 million were distributed to 11 senior executives in a recent 12-month period, roughly 58% of the maximum possible, which is below the ASX200 average of 66%.
The bank has been under close observation since it was sanctioned for various misconducts affecting nearly 19,000 customers from July 2019 to September 2023. The Banking Law Compliance Committee has labeled these offenses as serious and systematic.
When inquiries were made last week regarding the bonus distributions, ANZ opted not to respond.
Although ANZ has repeatedly apologized for its infractions and pledged to change its culture, Chairman Paul O’Sullivan noted in September that ASIC’s actions have led to more than 50 accountability reviews within the markets sector.
O’Sullivan mentioned that the repercussions would significantly impact certain individuals’ performance-based pay, although the exact effects won’t be known until the upcoming annual general meeting in December.
Green Party senator Nick McKim pointed out that high bonus payouts demonstrate “how flawed the system is,” asserting that the culture within Australian banks has remained unchanged since the royal commission inquiries, and that those responsible for the past fraud are still profiting.
Research from Acsi indicated that among 142 CEOs in ASX200 companies entitled to bonuses, just one did not receive one in the last financial year.
