Ex-boss goes after major lender in Supreme Court
Former ANZ chief executive Shayne Elliott has launched legal action against the bank after it cancelled millions of dollars in bonuses linked to his exit, adding to governance pressures at one of the country’s biggest mortgage lenders.
Elliott has filed proceedings in the Supreme Court of NSW, arguing ANZ has breached what he calls a “clear, unambiguous” departure agreement after the board, led by chairman Paul O’Sullivan, moved to strip him of variable pay.
“As you would expect, having entered into a contract, my expectation is that those terms would be honoured,” he said. Elliott said he accepted the need for accountability and had volunteered to give up part of his bonus, but added: “I have been left with no alternative other than to commence proceedings in the Supreme Court of NSW seeking a declaration that the bank has breached the contract that I had with it. I will be seeking the earliest possible hearing of my claim before the court and am fully committed to see this process through.”
The bank has already removed $13.5 million in bonuses and cut to zero some long‑term incentives due to vest in 2025 and 2026. Yet proxy firms Institutional Shareholder Services and CGI Glass Lewis have urged investors to vote against ANZ’s pay report, questioning why almost $8 million in long‑term incentives remains available.
O’Sullivan has defended the decision‑making process, saying “the board has been considered and very deliberate in its assessment of remuneration outcomes”. ANZ says its pay structures must promote prudent risk management and that no Australian‑based group executive, other than those in acting roles, will receive short‑term variable remuneration this year.
The dispute comes soon after ANZ agreed to pay $240 million to the Australian Securities and Investments Commission over failures in bond trading reporting and widespread misconduct in its retail bank that affected tens of thousands of customers. ASIC chairman Joe Longo described the bank’s behaviour as “grubby”. A Federal Court judge has since questioned whether the record penalty is high enough and is yet to hand down a decision.
Elliott, who led ANZ for nine years, has been replaced by former HSBC executive Nuno Matos. “I’ve long admired ANZ, particularly under the stewardship of Shayne, and it’s an honor to have been chosen by the Board to lead the next phase of ANZ’s evolution,” Matos said, highlighting the group’s “two scale domestic markets” and “two world-class platforms in ANZ Plus and ANZ Transactive”.
For mortgage professionals, the clash underscores the scrutiny on governance, risk and culture at a key player in home lending just as ANZ beds down its Suncorp Bank acquisition and seeks to keep its focus on technology, service and competitive pricing in a softer housing market.
