ANZ has announced key changes to its remuneration structure with individual bonuses being replaced with incentives based on overall group performance.
The changes were announced by ANZ chief executive, Shayne Elliott today who said that from 1 October, the only variable remuneration most ANZ employees would receive would be in the form of a Group Performance Dividend based on the bank’s performance from risk, financial, customer, people and reputation perspective.
Elliott said the Royal Commission had rightly shone a light on the negative impact an over emphasis on individual bonuses within the bank could have on customers and the community.
“We are taking action to rebalance the way we pay people so that variable remuneration is a smaller part of our people’s take home pay with these reduced bonuses to be determined by the overall performance of the bank,” he said.
The bank said a small percentage of people in mostly senior roles who had an increased ability to impact on ANZ’s performance would still have a portion of ‘at risk’ pay that would be determined by business unit and individual performance.
It said this would comprise a smaller proportion of total compensation with appropriate deferrals in place.