Proxy Advisors Urge Vote Against ANZ’s Executive Pay Report Amid Scandal Fallout

Australian lender ANZ Group is facing mounting pressure as a second influential proxy advisor has urged shareholders to vote against its executive remuneration report ahead of the bank’s annual meeting on December 18. Institutional Shareholder Services (ISS), a key global proxy advisory firm, released a report on Thursday recommending that investors reject the bank’s executive pay proposal. Earlier in the week, CGI Glass Lewis issued a similar recommendation, deepening scrutiny over ANZ’s handling of executive compensation.

The backlash follows ANZ’s decision this year to strip former Chief Executive Shayne Elliott of A$13.5 million (US$8.9 million) in bonuses tied to his long-term compensation package. Several other former executives also saw their pay reduced, resulting in a total of about A$32 million in eliminated bonuses, according to the bank’s annual report. Despite these cuts, ISS argued that the penalties were not stringent enough given ANZ’s recent history of scandals. The firm noted that Elliott still retained approximately A$7.9 million in long-term incentive payments, raising concerns about the accountability and governance standards within the bank’s leadership.

Proxy advisors hold significant sway in Australia, where many major institutional investors rely on their recommendations when casting votes at corporate meetings. A second consecutive vote against ANZ’s remuneration report could trigger a “second strike,” giving shareholders the opportunity to call for a board spill and potentially vote on whether directors should be removed. Both ISS and CGI Glass Lewis, however, stopped short of recommending a full board spill.

The heightened scrutiny comes after ANZ agreed in September to pay A$240 million in penalties—its largest ever—following findings by Australia’s corporate regulator. The regulator cited systemic failures, including acting “unconscionably” in a government bond deal and charging fees to deceased customers. The combination of reputational damage and governance concerns has intensified investor focus on the bank’s executive accountability as ANZ seeks to restore trust and stability.