ANZ Bank says it is spending about $10 million a year less on its top executives, after recent senior appointments have been signed upĀ on less generousĀ packages than predecessors.
The bank's annual report, published on Monday, said the bank's total remuneration pool for the chief executive Shayne Elliott and his most senior executives was about $30 million combined this year, down from $40 million in 2015.
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Yet despite the overall fall in executive pay, the bank is still making big sign-on payments to some of the high-profile executives recruited by Mr Elliott.
ANZ'sĀ new head of digital Maile Carnegie, who joined earlier this year, will be paidĀ more than $4 million to compensate her for foregone pay and bonuses at her former employer, Google.
![ANZ CEO Shayne Elliott has fixed pay that is about 40 per cent less than his predecessor, Mike Smith.](/web/20161108001155im_/http://www.smh.com.au/content/dam/images/g/s/h/e/i/o/image.related.articleLeadwide.620x349.gsjxb0.png/1478505786998.jpg)
The report said Ms Carnegie, who reports directly to Mr Elliott, would be paid $836,000 in cash and $3.26 million in shares between late this yearĀ and 2018 as part of her package. These payments would be made "as compensation for bonus opportunity foregone and deferred remuneration forfeited," the report said.
Chief financial officer Michelle Jablko, who started worked for ANZ in July, also received more than Ā $1.9 million as part of her move to the bank from GreenhillĀ and Co, and investment bank. This payment includes $268,000 in cash and $1.66 million in deferred shares vesting between next year andĀ 2021, also to compensate her for foregone bonus opportunities.
Aside from the sign-on payments, ANZ said it was paying less over the year to the most senior executives.Ā
"The total remuneration allocated for the CEO and disclosed executives has reduced (on an annualised basis) from around $40 million in FY15 to around $30 million in FY16, most of which is attributable to reduced fixed and variable remuneration levels,"Ā said ANZ director and chair of the human resources committee, Graeme Liebelt.
![Most senior executives who worked at the bank in both 2015 and 2016 experienced a pay cut.](/web/20161108001155im_/http://www.smh.com.au/content/dam/images/g/o/k/i/y/u/image.related.articleLeadwide.620x349.gsjxb0.png/1478505786998.jpg)
A key reason for this is becauseĀ Mr Elliott receives significantly less than ANZ paidĀ his predecessor MikeĀ Smith, who was the highest-paid chief of a Big Four bank during his time at ANZ.
The report showed Mr Elliott's total statutory pay in the year to September was $5.07 million, compared with Mr Smith's total pay of $9.7 million during his last year at the bank.
The report also showedĀ most senior executives who worked at the bank in both 2015 and 2016 experienced a pay cut ā with the exception of Mr Elliott, who was promoted to CEO duringĀ the year, and institutional boss Mark Whelan.
The decline in pay has come as Mr Elliott has unwound key parts of Mr Smith's Asian expansion strategy, including last week selling its retail banking and wealth business in five Asian countries. In the year to September, ANZ's profits declined 18 per cent after more than $1 billion in one-off charges.
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