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Remuneration and benefits - Corporate Responsibility
Remuneration and benefits
Pay and rewards
ANZ aims to provide a market competitive reward proposition to successfully attract, motivate and retain the highest quality individuals to deliver ANZ's business and growth strategies. 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 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.
| Fixed remuneration |
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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.
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| Short-term incentives |
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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.
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| Long-term incentives |
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Awarded as ANZ deferred equity (at the discretion of the Board), to the highest potential / performing employees for the purposes of retention and to align the interests of employees with shareholders.
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Further details in relation to ANZ's executive remuneration structure can be found on pages 20 to 41 of the 2008 Remuneration Report (PDF 3.65MB), which forms part of the 2008 Annual Report.
| Staff share schemes |
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We encourage our staff to become part owners in our business and share in ANZ's success by receiving, earning and buying ANZ shares. Since 1999, ANZ has given each permanent full-time or part-time employee (excluding senior executives and permanent employees with less than one year's service) up to $1,000 in shares as part of our Employee Share Acquisition Program. In addition, we also offer Australian employees discounted shares through the Employee Share Save Scheme. This Scheme allows eligible employees to purchase shares through salary sacrifice at a 5% discount. Employees are also provided with the opportunity to sacrifice part or all of their bonus in the form of ANZ equity (shares or options or a mix of both). |
| Salary packaging and other benefits |
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We have a range of salary packaging benefits available to our staff in Australia. Current benefits for eligible staff include:
We also offer discounts on ANZ products and services and special discounts on non-ANZ products and services such as computers, cars and travel. |
Progress in 2008
We are making good progress in closing the pay differential between men and women at ANZ, however a bias towards males remains at the most senior levels of the organisation.
| Gender pay differential - salaries by employee group | ||||
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| Australia | New Zealand | |||
| Employee Group | Differential | Favours | Differential | Favours |
| Executives | 4% | Male | 2% | Male |
| Senior Managers | 5% | Male | 13% | Male |
| Managers | 3% | Male | 5% | Male |
| Non-managers | 1% | Female | 5% | Female |
| Overall weighted average | 1% | Male | 2% | Female |
On 8 December 2008, for the eleventh year, we will be granting up to $1,000 of ANZ shares to eligible employees globally. The shares are offered under the Employee Share Acquisition Program as an investment in ANZ's future and are allocated subject to Board approval. Almost 29,000 employees in 29 countries participated in the 2007 offer.
During the year we also conducted a global review of ANZ's incentive schemes. The aim of the review was to ensure all of ANZ's incentive schemes:
- fairly and equitably reward our employees from an internal and external market perspective;
- provide appropriate rewards for our top performers in line with our out performance culture; and
- support ANZ's strategic objectives, bringing us another step closer to becoming a super regional bank.
As a result of the review, a number of enhancements have been made to further encourage and reward out performance, support a sales and customer centric culture, and drive behaviours that deliver growth and value to ANZ. In most instances, these improvements took affect from 1 October 2008, in time for the 2008/09 performance year.
The future
ANZ will continue to review, develop and enhance our reward strategies, policies and processes that support ANZ's strategic direction and that are performance linked to:
- attract, motivate and retain employees;
- ensure differentiation of individual rewards in line with ANZ's culture of rewarding for out performance; and
- enable the 'Business to achieve it's goals and objectives.
A key focus for 2008/09 will be to make the way we review remuneration more consistent across all our operations globally.
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© Australia and New Zealand Banking Group Limited (ANZ) 2009 ABN 11 005 357 522. ANZ's colour blue is a trade mark of ANZ.