Australia & New Zealand Banking Group Ltd. will replace employee bonuses with a new incentive based on the bank's performance from Oct. 1, as part of the lender's responses to recommendations from the royal commission into misconduct in the financial sector.
ANZ CEO Shayne Elliott said the move is to rebalance its payment structure "so that variable remuneration is a smaller part of our people's take home pay." He said the royal commission had shown the negative impact of the over emphasis on individual bonuses have on customers and the community.
The changes to the remuneration structure do not apply to ANZ's executive committee, whose remuneration is already structured in accordance to regulatory requirements. A small percentage of people in mostly senior roles who have an ability to impact ANZ's performance will still have a portion of "at risk" pay that will be determined by business unit and individual performance.
ANZ has also strengthened its accountability frameworks to ensure that there are consequences for those not meeting behavior or performance standards.