ANZ scraps individual bonuses

ANZ has taken individual bonuses off the table in favour of an incentive based on group performance.

From October 1 most ANZ staff will be rewarded with a group performance dividend based on the bank's performance across four perspectives: risk, financial, customer and people and reputation, instead of receiving a bonus based on their individual performance.

However, some of the bank's staff will be affected less than their colleagues.

The bank confirmed a limited number of senior staff "with an increased ability to impact on ANZ's performance" will retain a portion of 'at risk' pay based on their individual performance, while the executive committee will continue to be remunerated "in accordance with regulatory requirements."

ANZ said the changes would not impact the bank's total spend on compensation but rather its mix between fixed and variable remuneration, in an effort to reduce the "negative impact" an over emphasis on individual bonuses within banks have on the community, according to chief executive Shayne Elliot.

"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," Elliot said.

"We remain committed to reinforcing a high-performance culture and believe these changes will improve collaboration across the group while also giving employees greater clarity, ultimately benefiting customers, shareholders and the broader community."

ANZ noted its redesigned remuneration structure was a key initiative it set out for itself in response to the Royal Commission's recommendations in February, and said staff still need to satisfy specific conduct and performance requirements to earn variable remuneration in the new structure.

Read more: ANZShayne ElliotRoyal Commission
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