Skip to content

Remuneration Overview

The following pages provide a summary of the remuneration for the Non-Executive Directors (NEDs), Chief Executive Officer (CEO) and Disclosed Executives – Key Management Personnel (KMP). The detailed Remuneration Report is contained in the Annual Report from page 40 onwards. The report can be accessed via the ANZ website at anz.com/annualreport.

NON-EXECUTIVE DIRECTOR (NED) REMUNERATION

There was no increase to NED fees for the 2018 year (unchanged from 2016). Year-on-year differences in total remuneration relate to changes in Committee memberships.

    Short-Term NED Benefits Post-Employment  
  Financial Year Fees 1 Super-contributions 1 Total remuneration 2
    $ $ $
CURRENT NON-EXECUTIVE DIRECTORS
D Gonski 2018 Short-Term NED Benefits 804,831 Post-Employment 20,169 825,000
  2017 Short-Term NED Benefits 805,276 Post-Employment 19,724 825,000
I Atlas 2018 Short-Term NED Benefits 324,331 Post-Employment 20,169 344,500
  2017 Short-Term NED Benefits 317,776 Post-Employment 19,724 337,500
P Dwyer 2018 Short-Term NED Benefits 344,831 Post-Employment 20,169 365,000
  2017 Short-Term NED Benefits 345,276 Post-Employment 19,724 365,000
J Halton 3 2018 Short-Term NED Benefits 277,567 Post-Employment 20,169 297,736
  2017 Short-Term NED Benefits 241,063 Post-Employment 18,894 259,957
J Key 4 2018 Short-Term NED Benefits 148,546 Post-Employment 11,996 160,542
    Short-Term NED Benefits   Post-Employment    
H Lee 2018 Short-Term NED Benefits 314,831 Post-Employment 20,169 335,000
  2017 Short-Term NED Benefits 315,276 Post-Employment 19,724 335,000
G Liebelt 2018 Short-Term NED Benefits 345,858 Post-Employment 20,169 366,027
  2017 Short-Term NED Benefits 343,151 Post-Employment 19,724 362,875
J Macfarlane 2018 Short-Term NED Benefits 298,331 Post-Employment 20,169 318,500
  2017 Short-Term NED Benefits 298,776 Post-Employment 19,724 318,500
FORMER NON-EXECUTIVE DIRECTOR
I Macfarlane 5   Short-Term NED Benefits   Post-Employment    
  2017 Short-Term NED Benefits 68,225 Post-Employment 4,904 73,129
Total of all Non-Executive Directors 2018 Short-Term NED Benefits 2,859,126 Post-Employment 153,179 3,012,305
  2017 Short-Term NED Benefits 2,734,819 Post-Employment 142,142 2,876,961

1. Year-on-year differences in fees relate to changes in Committee memberships and changes to the superannuation Maximum Contribution Base.

2. Long-term benefits and share-based payments do not apply for the Non-Executive Directors. There were no non monetary benefits or termination benefits for the Non-Executive Directors in either 2017 or 2018.

3. J Halton commenced as a Non-Executive Director on 21 October 2016, so 2017 remuneration reflects a partial service year.

4. J Key commenced as a Non-Executive Director for Australia and New Zealand Banking Group Limited on 28 February 2018, so 2018 remuneration reflects a partial service year. In addition for 2018, in relation to his Non-Executive Directorship from 18 October 2017 for ANZ Bank New Zealand Limited, J Key also received a total of NZD 302,925 as a Non-Executive Director until 31 December 2017 and from 1 January 2018 as Chairman.

5. I Macfarlane retired as a NED on 16 December 2016, so 2017 remuneration reflects partial service year up to his date of retirement.

REMUNERATION AT A GLANCE

ANZ’S PURPOSE AND STRATEGY1

WITH REMUNERATION DELIVERED TO OUR CEO AND DISCLOSED EXECUTIVES THROUGH:

OUR REMUNERATION POLICY/REWARD PRINCIPLES:
Attract, motivate and keep great people
Reward our people for doing the right thing having regard to our customers and shareholders
Focus on how things are achieved as much as what is achieved
Are fair and simple to understand

WITH REMUNERATION DELIVERED TO OUR CEO AND DISCLOSED EXECUTIVES THROUGH:

OUR CORE REMUNERATION COMPONENTS2:
Fixed remuneration
Variable remuneration delivered as
Cash
Deferred shares
Performance rights
AT RISK

REINFORCED BY:

ALIGNING REMUNERATION AND RISK:
Assessing behaviours based on ANZ’s Values and risk/compliance standards
Risk is a key input in determining variable remuneration including as a multiplier in determining the ANZIP3 variable remuneration pool
Applying Board discretion on performance and remuneration outcomes
Being able to downward adjust deferred remuneration (including to zero)
Prohibiting the hedging of unvested equity

WHILE SUPPORTING THE ALIGNMENT OF EXECUTIVES AND SHAREHOLDERS THROUGH:

SHAREHOLDER ALIGNMENT:
Substantial shareholding requirements
Significant incentive deferral (up to four years) in ANZ equity
Use of relative and absolute Total Shareholder Return (TSR) hurdles
Use of Economic Profit as a key input in determining the variable remuneration pool

DRIVING PERFORMANCE THROUGH OBJECTIVES WITHIN THE GROUP PERFORMANCE FRAMEWORK TO DETERMINE THE VARIABLE REMUNERATION POOL:

GROUP PERFORMANCE CATEGORIES:
Risk
(overall adjustment)
Financial and Discipline
(50% weighting)
Customer
(25% weighting)
People and Reputation
(25% weighting)
Combined weighting 100% including both annual and longer term strategic measures

ANZ’S 2018 PERFORMANCE OVERALL:
(see sections 5.1 and 5.2 of the Remuneration Report)
Despite solid performance against the majority of metrics in the 2018 Group Performance Framework, the ANZIP variable remuneration pool for 2018 is significantly down on prior year, in recognition of the failures highlighted in the Royal Commission and their reputational impact.

2018 FIXED REMUNERATION CHANGES:
No change to the CEO’s fixed remuneration for 2018. Fixed remuneration for new appointments has been set lower than prior incumbent. No change to NED fees for 2018 (reduction of 20% to the Chairman fee and NED member fee (for current NEDs) in 2019).

INDIVIDUAL OUTCOMES REFLECT THE PERFORMANCE OF THE GROUP, DIVISION AND INDIVIDUAL:

2018 VARIABLE REMUNERATION OUTCOMES4:
(see sections 5.4 and 5.5 of the Remuneration Report)
CEO Variable Remuneration 75% of target which comprises: Annual Variable Remuneration: 83% of target (56% of max); and Long Term Variable Remuneration: 67% of target (subject to shareholder approval).
Current Disclosed Executives Variable Remuneration outcomes:
  % of target % of max
Average: 78 53
Range: 60 – 91 40 – 60
Nov 2014 performance rights fully lapsed. Executives received no value from this award.

1. See the ‘About our Business’ and ‘Our Strategy’ sections of the Annual Report.

2. The structure of our remuneration framework is aligned with our reward principles and has been designed to support ANZ’s purpose and strategy.

3. ANZ Incentive Plan (ANZIP) is our main variable remuneration plan.

4. Variable remuneration outcomes appropriately reflect the Group’s performanceske

REMUNERATION OVERVIEW The Power of Partnerships