ANZ welcomed decision by Elli 0 T to stop legal proceedings
TL;DR
ANZ will defend a lawsuit from former CEO Shayne Elliott over $13.5 million in bonus cuts tied to performance and regulatory issues, with the board emphasizing accountability under prudential standards. The case could set a precedent for executive compensation in banking.
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ANZ welcomed decision by Elli 0 T to stop legal proceedings
ANZ Defends Legal Challenge from Former CEO Over Bonus Cuts
Australian banking giant ANZ Group Holdings Ltd (ANZ.AX) has confirmed it will defend a legal claim brought by its former CEO, Shayne Elliott, following the revocation of A$13.5 million ($9 million) in bonuses for the 2025 financial year. Elliott initiated proceedings in the New South Wales Supreme Court, contesting remuneration decisions made by the ANZ Board.
The Board's decision to eliminate Elliott's short-term variable remuneration and reduce long-term incentives for 2025 and 2026 was tied to the bank's performance and accountability for "non-financial risk matters," including a A$240 million civil penalty paid to regulators for systemic operational failures. These included misconduct in a government bond deal and charging deceased customers. Similar cuts affected other executives, with total reductions across the leadership team amounting to A$32 million.
ANZ Chairman Paul O'Sullivan emphasized the Board's adherence to prudential standards requiring remuneration to align with risk management and performance outcomes. According to the chairman, "The Board has been considered and very deliberate in its assessment of remuneration outcomes. We are confident in our position and will defend this matter vigorously," he stated.
While Elliott's short-term bonuses were eliminated, he retains approximately A$7.9 million in long-term incentive pay post-cuts. The case highlights ongoing tensions between executive remuneration practices and corporate governance expectations under APRA's CPS 511 prudential standard.
No further comments were provided by Elliott, who has not responded to media inquiries. The outcome of this legal action could set a precedent for how banks balance accountability and executive compensation in the wake of regulatory scrutiny.
(https://www.anz.com.au/newsroom/media/2025/december/anz-comments-on-former-ceo-s-legal-action/): ANZ newsroom, December 2025
(https://www.reuters.com/sustainability/boards-policy-regulation/anz-defend-itself-against-former-ceos-legal-claim-9-million-bonus-cut-2025-12-12/): Reuters, December 2025
