Key Takeaways

• Shayne Elliott has discontinued legal proceedings against ANZ Bank over A$13.5 million in denied bonuses.

• ANZ confirmed no settlement or payment was made, with both parties covering their own legal costs.

• The dispute stemmed from regulatory breaches and governance failures that triggered board-level remuneration clawbacks.

• Shareholder pressure on executive pay remains elevated following a second “strike” vote on ANZ’s remuneration report.

ANZ chief executive Shayne Elliott has formally withdrawn his Supreme Court action in New South Wales after challenging the bank’s decision to deny him A$13.5 million in incentive payments for the 2025 financial year.

Elliott had argued that ANZ breached a binding agreement related to his exit package. In a prior statement, he maintained that while he accepted accountability, the agreed contractual terms governing his departure should have been honored.

ANZ confirmed the proceedings were discontinued and emphasized that no side deal or financial settlement was reached.

Accountability and Regulatory Context

The bonus dispute followed a series of regulatory and governance issues under Elliott’s leadership. In September, ANZ agreed to pay a record A$240 million fine across multiple court matters, admitting to misconduct including unconscionable conduct in a government bond deal and incorrect trading data reporting affecting thousands of customers.

Chairman Paul O’Sullivan previously told shareholders the board was confident in its legal position and signaled continued willingness to enforce executive accountability in line with post–Royal Commission regulatory expectations.

Investor Pressure and Remuneration Scrutiny

Elliott stepped down in May after more than nine years as CEO. ANZ’s annual report confirmed that neither Elliott nor his successor, Nuno Matos, received short-term bonuses for 2025, and previously awarded incentives to Elliott were cancelled.

Investor dissatisfaction over governance culminated in 32.4% of votes opposing ANZ’s remuneration report at its annual meeting, delivering the bank a second “strike” under Australia’s executive pay rules. A second strike increases pressure on boards and can trigger potential spill motions under corporate governance frameworks.

Governance Signal to the Market

The resolution of the case without payment reinforces the board’s position that executive compensation must align with regulatory compliance and long-term shareholder interests.

Across Australia’s banking sector, remuneration oversight remains a central theme as boards respond to heightened regulatory scrutiny and shareholder activism.

Outlook

With the legal dispute now closed, investor focus returns to ANZ’s operating performance. The bank has reported a stable start to its 2026 financial year, with steady capital levels and improving profitability.

Nevertheless, executive pay governance and accountability frameworks are likely to remain key considerations for shareholders evaluating long-term risk management and board discipline.

For confidential discussions regarding executive compensation governance, regulatory risk assessment in Australian financial institutions, and shareholder activism dynamics within banking franchises, our senior advisory team is available for discreet consultation tailored to institutional and cross-border mandates.