Our approach and performance

Pay and rewards

ANZ aims to provide market competitive pay and rewards to successfully attract, motivate and retain the highest quality individuals. Our remuneration and benefits are structured to reward people for their individual and collective contribution to our success, for demonstrating our values in action, and for creating and enhancing value for all ANZ stakeholders.

We review remuneration annually (fixed and variable) to ensure we remain market competitive in the financial services sector, as well as monitoring the pay differential internally between men and women at all levels. Gender pay differentials are reported annually as part of ANZ's corporate responsibility reporting.

Our Remuneration Policy ensures our pay and bonus systems encourage and reward appropriate risk-taking and achievement of sustainable shareholder returns. The Board is able to reduce or eliminate deferred performance-based remuneration which has not yet vested if it considers the initial grant was not justified in light of information arising after the grant was made or to protect the financial soundness of ANZ.

Fixed remuneration

Generally comprises cash salary, a superannuation contribution and the remainder as nominated benefits. Fixed remuneration is reviewed annually based on individual performance and market data.

Short-term incentives

A large proportion of ANZ employees (typically management and above), are also eligible to participate in ANZ's main short-term incentive programs whereby performance is assessed against key performance objectives aligned with ANZ's strategy. In line with our culture of rewarding for out-performance, rewards are significantly differentiated between average and outstanding performers. Group and division performance also impacts the size of individual payments.

Long-term incentives

Awarded as ANZ deferred equity (at the discretion of the Board), to senior executives and other high potential / performing employees for the purposes of retention and to align the interests of employees with shareholders.

Further details in relation to ANZ's executive remuneration structure can be found in our Annual Report.

Salary packaging and other benefits

We have a range of salary packaging benefits available to all of our staff. Current benefits for eligible staff in Australia include:

New Zealand offer the following benefits to eligible staff:

Our Results

2012 results

ANZ is committed to achieving pay equity for like roles across its business. ANZ tracks its progress annually and publicly reports its performance.

Every year ANZ conducts a review of performance-based compensation to ensure there is no systemic gender bias in its reward allocation. In 2012, the proportion of women achieving ANZ’s two highest levels of relative performance outcome (RPO), which determines bonus levels, was equal to men. In addition, 57% of award recipients in ANZ’s prestigious annual CEO Recognition Program were women.

The gender pay differential between males and females continues to be minimal, and reductions in the gender differentials in fixed pay were achieved in 2012.

Shares

In December 2012, ANZ granted equity to eligible employees. The equity grants are designed to align employees' interests with those of shareholders and to recognise the contribution of our employees. The equity under the 2012 Employee Share Offer was provided as either shares or rights which are allocated subject to Board approval. Over 39,798 employees across 31 countries were eligible for this year's offer, with 99.99% of these employees accepting allocated shares or rights.

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