Remuneration and benefits

Our approach

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:

  • additional personal and spouse superannuation contributions
  • Employee Share Save Scheme
  • airport lounge membership
  • car parking
  • our workplace donations and matched giving program  
  • lifestyle leave
  • novated leases for motor vehicles
  • discounts on ANZ products and services and special discounts on non-ANZ products and services such as computers, cars and travel.

New Zealand offer the following benefits to eligible staff:

  • concessions on banking products and services
  • subsidies on the cost of Corporate Wardrobe garments to staff
  • special discounts offered by some of our customers/suppliers such as computers, clothing and gym membership
  • access to employer-supported retirement savings schemes
  • subsidies on The Healthcare Base Plan for all permanent staff with a $250 per claim excess
  • a unique employee benefit package (Marram) of discounted accommodation and healthcare assistance to affiliated organisations
  • Employee Share Offer

2010 results

One of the ways we are removing barriers to female career progression is to focus on achieving greater pay equity between men and women within our organisation.  

This year, the gender pay differential between males and females continues to be fairly minimal, with reductions in the gender differentials in fixed pay being achieved as part of the 2010 Remuneration Review.  However, within Australia and New Zealand there is still an overall differential in favour of men at the most senior levels of the organisation.

Gender salary differentials by country (data as per December 2010)

Employee group

Australia

New Zealand
  Differential Favours Differential Favours
Senior Executives 10% Male 5% Male
Senior Managers 5% Male 5% Male
Managers 8% Male 9% Male
Non-managers 9% Male 5% Male
Overall weighed average 9% Male 6% Male

Employee group

APEA

India
  Differential Favours Differential Favours
Senior Executives 2% Female 1% Male
Senior Managers 11% Male 8% Male
Managers 19% Male 6% Male
Non-managers 0% Male 7% Male
Overall weighted average 6% Male 7% Male

Shares

In December 2010, for the 13th year, ANZ granted up to $1,000 of ANZ equity to eligible employees globally. 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 2010 Employee Share Offer was provided as either shares or rights which are allocated subject to Board approval. Over 36,400 employees across 30 countries were eligible for this year's offer, with 99.98% of these employees accepting allocated shares or rights.

2009 results

This year we reviewed our system of short-term incentives to better differentiate and reward employees who deliver have demonstrated outstanding performance against their objectives.

2009 also saw a concerted effort to address gender pay equity, which can be one manifestation of gender bias in an organisation. Managers in each of our business divisions were provided detailed data about the remuneration of their staff and asked explicitly to confirm that employees were fairly compensated against male peers based on their role type and wage band. This ensures detailed gender pay information is formally factored into our review of remuneration across the group.

The difference in base salary remuneration between men and women decreased across the majority of levels in 2009. This table describes the percentage difference at each level before and after the 2009 Remuneration Review.

Gender salary differentials by employee group

Employee group Before review After review Favours
1 Senior Executives -5.0% -5.0% Male
2 Executives -2.5% -2.2% Male
3 Senior Managers -4.2% -3.8% Male
4 Managers -3.2% -2.8% Male
5 Non-managers 1.8% 1.4% Female
6 Non-managers 4.9% 4.7% Female

Gender salary differentials by country

Employee group Australia New Zealand
  Differential Favours Differential Favours
Executives 11% Male 2% Female
Senior Managers 6% Male 7% Male
Managers 9% Male 5% Male
Non-managers 8% Male 4% Female
Overall weighted average 8% Male 1% Female

In November 2009, for the twelfth year, ANZ granted up to $1,000 of ANZ shares to eligible employees globally. The shares are offered under the Employee Share Plan as an investment in ANZ's future and are allocated subject to Board approval. Almost 30,500 employees in 31 countries participated in the 2009 offer.

2008 results

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

Employee group Australia New Zealand
  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
  • 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
  • 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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