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Remuneration and benefits - Corporate Responsibility
Remuneration and benefits
Our approach
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. |
| 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. |
| 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. |
Further details in relation to ANZ's executive remuneration structure can be found on pages 24 to 50 of the 2009 Remuneration Report (PDF 6.6MB) which forms part of the 2009 Annual Report.
| 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. |
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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