Elliott ends Supreme Court action with no payout
Former ANZ Bank chief executive Shayne Elliott has dropped his legal action against the Melbourne-based lender after it denied him A$13.5 million in bonuses following a string of regulatory and governance failures at the big four giant, AFR and SMH reported.
Elliot launched Supreme Court action in NSW in December, arguing that ANZ had reneged on an agreed exit package. The former CEO said at the time that he accepted the need for accountability, but insisted the bank had breached a binding deal.
“The bank and I had a clear, unambiguous agreement about the terms of my departure. As you would expect, having entered into a contract, my expectation is that those terms would be honoured,” Elliott said in a statement in December.
On Tuesday, ANZ confirmed Elliott had discontinued the proceedings and stressed it had not struck any side deal to resolve the dispute.
“ANZ today welcomed the decision by former chief executive officer Shayne Elliott to discontinue legal proceedings relating to remuneration outcomes in the 2025 financial year,” the bank said. “As part of discontinuation, ANZ confirms that no payments or commitments were made to Mr Elliott, with both parties bearing their own costs.”
Record fine and customer misconduct drive accountability push
Elliott missed out on A$13.5 million in incentives after the board moved to enforce accountability for multiple incidents under his leadership. Those included four court matters settled in September, when ANZ agreed to pay a record A$240 million fine. In doing so, the bank admitted to unconscionable conduct on a major government bond deal, incorrect reporting of trading data and misconduct affecting nearly 65,000 customers.
After Elliott launched his claim, chairman Paul O’Sullivan told investors at ANZ’s annual meeting the bank was “very confident of our legal position” and vowed to fight the case. O’Sullivan also flagged that more executives could face pay cuts as part of a long‑running clean‑up after the banking Royal Commission.
“I want to be really clear, the board can – and will – make future adjustments where appropriate. This methodical assessment over an extended period is consistent with the intent of the law, in terms of regulation, following the Royal Commission, ensuring accountability and alignment over time,” O’Sullivan told the annual meeting.
Second strike on pay as investors turn up pressure
Elliott left ANZ in May after more than nine years in the top job. ANZ’s annual report, published in November, said neither Elliott nor his successor, Nuno Matos, had received a short‑term bonus for the 2025 year, and the bank had also cancelled incentives that Elliott was due to receive.
Investor frustration over governance and pay culminated in a hefty protest vote at ANZ’s annual meeting last year, with 32.4% of votes opposing its remuneration report, delivering the bank a second “strike” on executive pay.
This development follows a strong start to ANZ’s 2026 financial year, with the group reporting improved profitability and stable capital and asset quality across its Australia and New Zealand businesses.
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