2019 BASEL III PILLAR 3DISCLOSURE
AS AT SEPTEMBER 2019
APS 330:REMUNERATIONDISCLOSURE

ANZ Basel III Pillar 3 disclosure

September 2019

Important noticeThis document has been prepared by Australia and New Zealand Banking Group Limited (ANZ) to meetits disclosure obligations under:
the Australian Prudential Regulation Authority (APRA) Authorised Deposit-taking Institutions
Prudential Standard (APS) 330: Public Disclosure as applicable to ANZ;the Hong Kong Monetary Authority (HKMA) Supervisory Policy Manual CG-5: Guideline on aSound Remuneration System (HKMA Guidelines) as applicable to ANZ’s Hong Kong (HK) branch;and
Article 450 of the Capital Requirements Regulation (CRR) and the Prudential Regulation
Authority’s (PRA’s) Senior Management Arrangements, Systems and Controls sourcebook(SYSC) 19A.3.12A R as applicable to ANZ Bank (Europe) Limited (ANZBEL).
This disclosure was prepared as at 30 September 2019. ANZ has a continuous disclosure policy, underwhich ANZ will immediately notify the market of any material price sensitive information concerning theGroup, in accordance with legislative and regulatory disclosure requirements.

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ANZ Basel III Pillar 3 disclosure

September 2019

Remuneration Disclosure
Basis of DisclosureThis document presents:
 the 2019 financial year (2019) remuneration disclosures of Australia and New Zealand Banking
Group Limited (ANZ), as required by the Australian Prudential Regulation Authority (APRA)
Authorised Deposit-taking Institutions Prudential Standard (APS) 330: Public Disclosure; the 2019 remuneration disclosures of ANZ, relating to ANZ’s Hong Kong (HK) branch as requiredby the Hong Kong Monetary Authority (HKMA) Supervisory Policy Manual CG-5: Guideline on aSound Remuneration System (HKMA Guidelines); and the 2019 remuneration disclosures of ANZ, relating to employees identified as United Kingdom(UK) Material Risk Takers (MRTs) for ANZ Bank (Europe) Limited (ANZBEL), as required by the
remuneration disclosure requirements of Article 450 of the Capital Requirements Regulation(CRR) and the Prudential Regulation Authority’s (PRA’s ) Senior Management Arrangements,
Systems and Controls sourcebook (SYSC) 19A.3.12A R1.
The disclosures contained in this document are based on information that is consistent with information
provided to ANZ’s external auditor. However, the information provided is for regulatory disclosure
purposes, rather than statutory financial reporting disclosures, and may not be comparable to otherinformation disclosed by ANZ. Additional information on ANZ’s remuneration policies and structures iscontained in the ANZ 2019 Annual Report.
Bodies that oversee Remuneration
The ultimate responsibility for the sound and prudent management of remuneration at ANZ rests with the
ANZ Board. The Board is assisted in overseeing remuneration matters, including adherence to ANZ
remuneration policies and practices, by the Board Human Resources Committee (HRC).
As at 30 September 2019, the HRC consisted of five members, all of whom are independent NonExecutive Directors2. The HRC met six times during the 2019 financial year. Committee fees for the HRC
chair for the 2019 financial year were AUD57,000 and for HRC members were AUD29,000.
The purpose, powers and duties of the HRC are set out in the HRC Charter. The HRC pays particularattention to the remuneration of the senior executive population, the highest paid individuals, individuals
who could have a material impact on ANZ’s financial soundness, the remuneration structures ofindividuals who perform a risk and financial control role and adherence to the ANZBGL Remuneration
Policy.
The ANZBGL Remuneration Policy applies to all ANZ employees globally, including:

Senior Managers
Senior Managers (at the ANZ level) are the Responsible Person roles as detailed in ANZBGL’s
Remuneration Policy. ANZ’s current Responsible Persons are the CEO, Group Executive
Committee (ExCo) members and other key roles identified in ANZ’s Fit and Proper Policy. For
2019, ANZ had a total of 24 Senior Manager roles (26 individuals due to movement in roles); 26
roles in 2018 (32 individuals due to movement in roles).



Material Risk Takers
MRTs (at the ANZ level) are any other persons (not covered by the Senior Manager definition
above), for whom a significant portion of total remuneration is based on performance and whose
activities, individually or collectively, may affect the financial soundness of ANZ. For ANZ theseare Senior Executives who can influence the Group’s capital, funding and liquidity, market risk,
underwriting risk, and/or credit and counterparty risk. For 2019, ANZ had a total of 35 MRT
roles3 (35 individuals); 6 roles in 2018 (7 individuals due to movement in roles).

1
ANZBEL’s banking license was cancelled on 14 November 2018. Disclosure relating to UK MRTs contained in thisdocument is for the period 1 October 2018 to 14 November 2018.
2
The ANZ Board Chairman is an ex-officio member of the Committee and does not receive a Committee member fee.
3
Individual and collective MRT roles were reviewed and expanded in 2019.

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ANZ Basel III Pillar 3 disclosure

September 2019HK branch
With respect to ANZ’s HK branch:oSenior Management and Key Personnel (relative to the HK branch) – Senior Management
includes those who are responsible for oversight of firm-wide strategy or activities or
those of material business lines. Key Personnel includes those whose duties or activities
involve the assumption of material risk or the taking on of material exposures. For 2019,
ANZ’s HK branch had a total of 11 Senior Management and Key Personnel roles (14individuals due to movement in roles); 10 roles in 2018 (12 individuals due to movement
in roles).



ANZBEL UK Material Risk Takers
With respect to ANZ’s UK operations for ANZBEL, UK MRT employees include:oSenior Management and Risk Takers (relative to the UK operations for ANZBEL) – Senior
Management includes those performing Significant Influence Functions. Risk Takers
includes those whose professional activities have a material impact on the firm’s risk
profile. For 2019, ANZ’s UK operations for ANZBEL had a total of 6 Senior Management
and Risk Taker roles (6 individuals); 6 roles in 2018 (6 individuals).

Throughout the course of the year the HRC has made all remuneration-related decisions andrecommendations to the Board independently of management. The HRC also has free and unfetteredaccess to ANZ employees and to relevant external providers, when required.
During 2019, the HRC and management received information from the following external providers: Aon,
Ashurst, EY, Mercer Consulting (Australia) Pty Ltd, Morrow Sodali and PricewaterhouseCoopers. This
information related to market data, market practices, legislative requirements and the interpretation of
governance and regulatory requirements.
Design and Structure of Remuneration Processes
The Australia and New Zealand Banking Group Limited Remuneration Policy (ANZBGL Remuneration
Policy) provides the HRC and management with a consistent framework for managing remuneration andremuneration-related matters. Where overseas legislative/regulatory requirements for foreign-owned
financial services companies exceed the ANZBGL Remuneration Policy requirements, the ANZBGLRemuneration Policy has adopted specific country addendums or a local/country specific policy (e.g. New
Zealand (NZ) who operate under the ANZ NZ Remuneration Policy) to apply the local legislativerequirements to any impacted employees in the relevant jurisdiction.
ANZ’s remuneration framework addresses:
Remuneration mix and market positioning;
Fixed and variable remuneration;
Shareholding guidelines and hedging prohibitions;
Independence of Risk and Financial Control Personnel;
Requirements for other ANZ APRA Regulated Entities and Registered Superannuation Entity
Licensees and NZ, UK, HK and Indonesia based employees; andEngagement of remuneration consultants.
The objective of the ANZBGL Remuneration Policy is to shape the Group’s remuneration strategies andinitiatives in line with the ANZ Reward Principles and applicable legal requirements. Our Reward
Principles support the achievement of ANZ’s purpose and strategy through programs that:
Attract, motivate and keep great people;

Reward our people for doing the right thing having regard to our customers and shareholders;
Focus on how things are achieved (values, culture and risk) as much as what is achieved(performance); and
Are fair and simple to understand.
Performance and remuneration outcomes for all Risk and Financial Control Personnel are determined by
the appropriate reporting manager within these functions directly, and not the business that theindividual supports. This ensures individuals are remunerated independently of the business they
oversee.
The ANZBGL Remuneration Policy in its current form was first introduced in February 2010 to comply
with APRA’s Prudential Standard CPS 510: Governance (CPS 510). An effectiveness review of the
ANZBGL Remuneration Policy is conducted by management on an annual basis and the outcomes arereviewed by the HRC and Board to ensure that it remains appropriate for its intended purpose, and iscompliant with the APRA Prudential Standard and the specific overseas legislative/regulatory
requirements for foreign-owned financial services companies where relevant. The HRC last reviewed the
ANZBGL Remuneration Policy in February 2019 with updates approved by the Board at the time. The HRC

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September 2019

and Board have determined that the ANZBGL Remuneration Policy and its specific country addendums
remain appropriate for their intended purpose and are compliant.
Remuneration at ANZ
ANZ’s variable remuneration spend is adjusted each year to reflect ANZ’s performance outcomes, and isapproved by the Board. Individual remuneration at ANZ is comprised of fixed remuneration and variable
remuneration.
Fixed remuneration: Fixed remuneration is designed to reward individuals for their skills andexperience, and the accountability of their role. Fixed remuneration is reviewed annually with regard to
local market practices and affordability.
Variable remuneration: ANZ’s variable remuneration opportunity provides relevant employees with “atrisk” reward component(s) designed to drive performance in the short term and the medium to longterm.
All deferred remuneration ANZ award to an employee is subject to ANZ’s on-going and absolute
discretion to adjust this downward (malus) (including to zero) at any time. ANZ may exercise thisdiscretion, for example, where: there is a need to protect the financial soundness of ANZ or to meet regulatory requirements orthere has been a material failure of risk management or controls within ANZ; the employee has acted fraudulently or dishonestly, failed to act with due care, skill anddiligence, or failed to comply with ANZ Group policies (including the Code of Conduct), processes
or directions;
 the employee is responsible or accountable, directly or indirectly, by virtue of their role orseniority for an occurrence/event which has had an adverse impact on ANZ; there has been misconduct and the employee was involved directly or indirectly, failed to takeadequate steps, could be considered responsible due to their seniority, or the decision to award
or grant the deferred remuneration was made on the basis of misinformation.
Further, if the Accountable Persons have failed to comply with their accountability obligations under the
Banking Executive Accountability Regime (BEAR), their deferred remuneration will be reduced by anamount that is proportionate to the failure, as required by BEAR.
The Board also has an on-going discretion to defer the vesting of deferred remuneration (Further Deferral
Discretion).
For UK MRTs, where remuneration has vested (and during the retention period) and:the employee participated in or was responsible for conduct which resulted in significant losses
to the firm, or failed to meet appropriate standards of fitness or propriety (or both); or
there is reasonable evidence of employee misbehaviour or material error; or
the firm or the relevant business unit (or both) suffers a material failure of risk management;
the Board has the on-going and absolute discretion to recover and/or request repayment of vested
variable remuneration in any circumstance that it determines is reasonable.
Each year the mix of cash and equity an individual receives varies, as the value of the variable
remuneration increases or decreases, to reflect individual, business and ANZ overall performanceoutcomes for the year.
An individual’s variable remuneration may comprise a short term incentive4 opportunity and a long term
incentive5 opportunity, or a blended variable remuneration opportunity.
For UK MRTs, the ratios between fixed and variable remuneration do not exceed 1:1.

4
5

Also referred to as Annual Variable Remuneration (AVR).
Also referred to as Long Term Variable Remuneration (LTVR).

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ANZ Basel III Pillar 3 disclosure

September 2019

ANZ Incentive Plan (ANZIP)The ANZIP is designed to align performance to ANZ’s strategic objectives and annual operating plan,
fairly reward employees and encourage performance without encouraging undue risk taking. It is adiscretionary variable remuneration plan operating across ANZ, covering the majority of employees.
To determine and approve the ANZIP variable remuneration pool, the Board considers:
our financial performance – a range of metrics are used including cash profit, economic profit
and return on risk weighted assets. Economic profit, which is a risk adjusted measure and astrong indicator of shareholder value, is the primary financial driver but is balanced against
other financial metrics and qualitative factors;
performance against the Group Performance Framework; andother relevant factors such as the overall operating environment, market competitive
positioning, affordability, the quality of our results, and prior year pools.
Under the 2019 Group Performance Framework, performance against expectations was evaluated using a
range of objective indicators and subjective considerations including management input on work
undertaken, evidence of outcomes realised and lessons learned, and with consideration given to theoperating, regulatory and competitive environment. The Group Performance Framework includes thefollowing key performance categories:
Risk and Reputation (modifier 0% to 110%) – adherence is measured through a range ofrisk indicators such as regulatory breaches, audit issues, risk culture, customer remediation
progress, community and reputation sentiment and breaches of primary metrics in the Group
Risk Appetite Statement;
Customer (35% weight) – includes indicators related to the customer experience anddelivering innovative solutions;
People and Culture (30% weight) – includes indicators related to our Accountability andConsequence framework, diversity, engagement, and capability.

Financial and Discipline (35% weight) – includes strategy execution, profitability, returns,
and funding and liquidity indicators;
Performance objectives within each division are strategically aligned to the Group Performance
Framework.
Individual performance metrics, which form part of an individual’s annual objectives, are tailored toreflect the nature of the role.
Individual remuneration outcomes are discretionary and linked to both ANZ, divisional and individual
performance outcomes for all employees. Each individual’s performance is assessed at year end against
their agreed financial and non-financial objectives. Demonstration of the ANZ Values and an assessmentof compliance, risk management and behaviour forms a fundamental aspect of the performanceassessment. Risk and Compliance input is a critical part of the assessment process in determining theperformance of ANZ and in ensuring that individual remuneration has been appropriately assessed withregard to risk. Individual reward outcomes are then determined, taking into consideration both theindividual’s performance, divisional performance and the performance of ANZ overall. Awards may be
below, at or above the individual’s target opportunity.
Mandatory deferral of a significant portion of variable remuneration places an increased emphasis on
having a variable structure that is flexible, continues to be performance linked, has significant retention
elements and aligns the interests of employees to shareholders to deliver against strategic objectives.

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ANZ Basel III Pillar 3 disclosure

September 2019

For the CEO, ExCo and GGM Internal Audit (GGM IA), 2019 variable remuneration is delivered as follows:
Delivered as

CEO

ExCo6 and GGM IA

Deferral period

Cash

50% of short term
incentive

33% of variable
remunerationn/aDeferred shares or sharerights50% of short term
incentive

33% of variable
remuneration

Pro rata vesting overfour years withstaggered vesting7

Performance rights8 (ordeferred share rights9)

100% of long term
incentive

34% of variable
remuneration10

Four years

For all other employees, variable remuneration is delivered in cash up to the mandatory deferral
threshold. In 2019:
If an employee’s variable remuneration is below AUD150,000 (or local currency equivalent),
then the variable remuneration is paid in cash.
If an employee’s variable remuneration is at or exceeds AUD150,000, then mandatory deferral
will apply:o
The first AUD80,000 of the variable remuneration is paid in cash (no deferral);oOf the amount above AUD80,000:

40% will be paid in cash (no deferral);
20% will be deferred as ANZ equity for 1 year;
20% will be deferred as ANZ equity for 2 years; and
20% will be deferred as ANZ equity for 3 years.
This means the minimum deferral amount is AUD42,000.
The HRC regularly reviews the thresholds at which mandatory deferral is applied, the quantum of variable
remuneration which is subject to deferral and the time period over which deferral occurs.
Deferred remuneration remains at risk, and can be adjusted downwards at the discretion of the Board
until the vesting date.

6
For the time spent acting in role, the variable remuneration for the Acting Group Executive and CEO NZ is delivered
60% cash and 40% as shares , which are deferred for four years.
7
For the CEO and ExCo (excluding Chief Risk Officer (CRO)), deferred shares or share rights will vest 40% at the end ofyear one, 30% at the end of year two, 20% at the end of year three and 10% at the end of year four.
For the CRO and GGM IA, deferred shares or share rights will vest 30% at the end of year one, 30% at the end of year
two, 20% at the end of year three and 20% at the end of year four.
8
A face value methodology is used to determine the number of performance rights allocated. 2019 performance rights
granted in November/December 2019 are divided into two tranches: Tranche 1 (75%) ANZ Total Shareholder Return(TSR) relative to a select financial services comparator group and Tranche 2 (25%) ANZ TSR against ANZ Compound
Annual Growth Rate (CAGR) TSR target set by the Board.
9
The CRO and GGM IA receive deferred share rights, instead of performance rights, to preserve the independence intheir respective roles.
10
Performance rights face value at threshold vesting (or deferred share rights at face value).

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ANZ Basel III Pillar 3 disclosure

September 2019

UK MRTs who do not meet the ‘de minimis’ rule11 are eligible to participate in ANZ’s variable
remuneration plans where applicable for their role, and payments will be made in accordance with theCode requirements as below (for performance years beginning on or after 1 October 2017), depending on
what type of MRT they are:(a) MRT - PRA
Senior Manager12
Deferred Amount(b) MRT - Risk
Manager13(c) MRT - Not (a) or(b)

At least 60% for variable remuneration equal to or greater than GBP
500,000.
At least 40% for variable remuneration less then GBP 500,000.

Equity / Cash

The deferred and non-deferred portion will be paid at least 50% in equity
with the remaining amount in cash.

Vesting Period fordeferred portion

7 years from award
with no vesting until 3
years after award vesting no faster thanpro-rata at the end ofeach year on and after
the 3rd year.

Vesting Period fornon-deferred
portion

Vests immediately at grant.

Retention Period fordeferred and nondeferred portion

Equity (both deferred and non-deferred) will be subject to a Retention Periodof 12 months from vesting.

Malus

All unvested awards are subject to reduction, including to zero, using malus.

Clawback

All vested awards will be subject to recovery using clawback.

Clawback Period

7 years from award. Can be increased to at least
10 years in certain circumstances.14

5 years from award vesting no faster thanpro-rata at the end ofeach year.

3 years from award vesting no faster thanpro-rata at the end ofeach year.

7 years from award.

Long term incentives (LTI)
Employees at an Executive to Manager level may be considered for a long term incentive which isdelivered as three year deferred shares (or share rights). Long term incentives at this level are typicallyawarded to recognise and retain those who perform and have long-term potential, providing alignment of
a portion of an individual’s remuneration to sustained growth in shareholder value over the longer term.
All long term incentive equity remains at risk, and can be adjusted downwards, until vesting.

11

Certain requirements of the UK’s PRA Remuneration Code relating to the structure of an individual’s remuneration do
not apply to a UK MRT who meets the ‘de minimis’ rule. This is where variable is less than 33% of total remunerationand total remuneration is less than GBP 500,000.
12
Senior Managers are MRTs who perform a PRA senior management function.
13
Risk Managers are MRTs who do not perform a PRA senior management function, but whose professional activities
meet the qualitative criteria set out in Article 3(1) to 3(9), 3(10) (but only by virtue of being responsible for acommittee referred to therein), 3(13) or 3(15) of the EU MRTs Regulation.
14
Circumstances are where: (a) the firm has commenced an investigation into facts or events which it considers could
potentially lead to the application of clawback were it not for the expiry of the clawback period; or (b) the firm has been
notified by a regulatory authority that an investigation has been commenced into facts or events which the firm
considers could potentially lead to the application of clawback by the firm were it not for the expiry of the clawback
period.

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ANZ Basel III Pillar 3 disclosure

September 2019

Current and Future Risks
ANZ has an Enterprise-wide risk management framework which provides the methodology and tools
required to deal with the full range of risks managed within ANZ, both at the Enterprise level andindividual business level, and provides the means to prepare for emerging risks.
Risk appetite is set using both qualitative and quantitative measures across the major risk classes
including liquidity, market, financial, credit and operational risk (including risks with compliance,
reputation or technology drivers) to ensure business objectives and performance are measured andmonitored on a risk-adjusted basis and within appetite.
To ensure consistent monitoring year on year, the Board considers performance against a number offactors to determine the ANZIP variable remuneration pool, including the Group Performance Frameworkand economic profit (a risk-adjusted financial measure). This helps to ensure that the variable
remuneration pool is shaped by risk considerations. The CRO and Chief Financial Officer review andprovide input to the Board/HRC on the ANZIP variable remuneration pool.
The ANZBGL Remuneration Policy ensures the design, monitoring, measurement and determination of
remuneration outcomes occur with consideration against the risk management framework.
The design and operation of all variable remuneration plans are required to adhere to a set of policy
principles and governance standards which require the approval of the Finance, Risk, and Talent andCulture functions.
Individual variable remuneration awards are made on the basis of a risk adjusted view of both financial
and non-financial performance. However, if the assessment of performance subsequently proves to beinaccurate or incorrect, the unvested deferred awards can be adjusted downward by the Board.

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ANZ Basel III Pillar 3 disclosure

September 2019

Quantitative Disclosures for ANZ Senior Managers and Material Risk Takers
The following quantitative disclosures are provided with reference to the ANZ Remuneration Policy andcurrent practices, and include individuals who met the definitions of ANZ Senior Manager or MRT at any
stage during the financial year.
Table 1 (APS 330, Table 22 (h) and 22 (j)): Remuneration - fixed, variable and other
remuneration (AUD)
Table 1 provides a view of how remuneration is paid or communicated to individuals, and is consistent
with the Variable Remuneration Awarded and Actual Remuneration Received tables in the 2019
Remuneration Report.
Specifically, fixed remuneration relates to amounts for/paid during the financial year and variable
remuneration relates to the communicated cash and equity values for the financial year.
This approach has been chosen over the Statutory Remuneration Disclosure approach (i.e. the inclusionof cash variable remuneration for the financial year and also the accounting expense of prior year
variable remuneration share-based payments in the financial year) as it provides greater transparency tothe value communicated to individuals for the financial year.
All Senior Manager and MRT deferred remuneration is deferred into equity.
No guaranteed bonuses, sign-on awards or termination payments have been paid/granted in the financial
year to Senior Management or MRTs, except for one role in 2018 who received relocation support upon
termination. The relocation support provided on termination has not been disclosed below to ensure
confidentiality.
Financial Year 2019
Number of people
Fixed remuneration (cash – non-deferred) AUD ’000

Senior Management

MRTs

26

35

18,642

8,187

Variable remuneration
Number of people

18

33

9,179

5,792

Cash (deferred) AUD ’000-

118

Shares and share-linked instruments (non-deferred) AUD ’000-

177

17,244

7,036

Cash (non-deferred) AUD ’000

Shares and share-linked instruments (deferred) AUD ’000

Financial Year 2018
Number of people
Fixed remuneration (cash – non-deferred) AUD ’000

Senior Management

MRTs

32

7

20,7163,176

Variable remuneration
Number of people

27

6

9,854

2,806

Cash (deferred) AUD ’000--

Shares and share-linked instruments (non-deferred) AUD ’000--

17,3593,618

Cash (non-deferred) AUD ’000

Shares and share-linked instruments (deferred) AUD ’000

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ANZ Basel III Pillar 3 disclosure

September 2019

Table 2 (APS 330, Table 22 (i) and 22 (k)): Deferred remuneration exposed to implicit andexplicit adjustments (AUD)
Values have been calculated using a 1-day volume weighted average price (VWAP) of ANZ shares onvesting date (paid out)/30 September 2019 (outstanding), multiplied by the number of shares/rights(face value). Reductions are determined comparing these values to the allocation value at grant. All
outstanding deferred remuneration is exposed to ex post explicit and implicit adjustments.
Explicit adjustments reflect lapses, due to performance conditions not being met and/or due to cessationof employment. Implicit adjustments reflect share price reductions in the value of equity from grant.
In 2019 and 2018, all Senior Manager and MRT deferred remuneration was deferred into equity, except
in 2019 where three UK-based employees received their variable remuneration half in equity and half incash in accordance with UK regulatory requirements.
Financial Year 2019
Senior Management

MRTs

Deferred remuneration paid out
Vested cash $’000
Vested shares and share-linked instruments $’000

395

744

10,627

4,362

Outstanding deferred remuneration
Unvested cash $’000

192

1,295

62,076

37,609Total reductions due to ex post explicit adjustments $’000(13,255)(1,437)

Total reductions due to ex post implicit adjustments $’000(1,228)(351)

Unvested shares and share-linked instruments $’000
Deferred remuneration reductions

Financial Year 2018
Senior Management

MRTs

Deferred remuneration paid out
Vested cash $’000
Vested shares and share-linked instruments $’000

686-

14,951

5,651

Outstanding deferred remuneration
Unvested cash $’000

792-

65,978

11,873

Total reductions due to ex post explicit adjustments $’000(13,703)(5,595)

Total reductions due to ex post implicit adjustments $’000(1,478)(193)

Unvested shares and share-linked instruments $’000
Deferred remuneration reductions

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September 2019

Quantitative Disclosures for ANZ HK branch
The following quantitative disclosures are provided with reference to the ANZ Remuneration Policy andcurrent practices, and include individuals who met the definition of Senior Management and Key
Personnel for ANZ HK branch at any stage during the financial year.
Table 3 (HKMA CG-5 (k) and (m)): Remuneration - fixed, variable and other remuneration(HKD)
Table 3 provides a view of how remuneration is paid or communicated to individuals:


Fixed remuneration relates to amounts for/paid during the financial year.

Variable remuneration relates to the communicated cash and equity values (fair value) for thefinancial year.
No guaranteed bonuses, sign-on awards or termination/severance payments15 have been
paid/granted/awarded in the financial years 2019 and 2018 to Senior Management and Key Personnel for
the ANZ HK branch, except for one role in 2019 who received an ex-gratia payment upon termination.
The termination payment has not been disclosed below to ensure confidentiality.



Financial Year 2019
HK Senior Management
and Key Personnel
Number of people

14

Fixed remuneration (cash – non-deferred) HKD ’000

25,372

Variable remuneration
Number of people

11

Cash (non-deferred) HKD ’000

6,161

Cash (deferred) HKD ’000-

Shares and share-linked instruments (deferred) HKD ’000

3,396

Total variable remuneration HKD ’000

9,557

Total Remuneration HKD ’000

34,929Financial Year 2018
HK Senior Management
and Key Personnel
Number of people

12

Fixed remuneration (cash – non-deferred) HKD ’000

20,722

Variable remuneration
Number of people

7

Cash (non-deferred) HKD ’000

5,342

Cash (deferred) HKD ’000-

Shares and share-linked instruments (deferred) HKD ’000
Total variable remuneration HKD ’000

7,977

Total Remuneration HKD ’000

15

2,635
28,699Non-contractual items.

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ANZ Basel III Pillar 3 disclosure

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Table 4 (HKMA CG-5 (h), (i), (j), (l)): Deferred remuneration (HKD)
Values have been calculated using a 1-day volume weighted average price (VWAP) of ANZ shares onvesting date (paid out)/30 September 2019 (outstanding), multiplied by the number of shares/rights(face value). Reductions are determined comparing these values to the allocation value at grant.
Performance adjustments reflect lapses, due to performance conditions not being met and/or due tocessation of employment.
Financial Year 2019
HK Senior Management
and Key Personnel
Deferred remuneration
Unvested outstanding deferred remuneration (Cash) HKD ’000-

Unvested outstanding deferred remuneration (Shares and sharelinked instruments) HKD ’000
Vested outstanding deferred remuneration (Shares and share-linked
instruments) HKD ’000

9,476
-

Awarded deferred remuneration HKD ’000

1,987

Paid out/vested deferred remuneration HKD ’000

2,269

Remuneration reductions
Deferred remuneration reduced through performance adjustments
’000

(541)

Total reductions due to ex post explicit adjustments HKD ’000

(746)

Total reductions due to ex post implicit adjustments HKD’000(85)

Total outstanding deferred remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000
Total outstanding retained remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000

9,476
-

Financial Year 2018
HK Senior Management
and Key Personnel
Deferred remuneration
Unvested outstanding deferred remuneration (Cash) HKD ’000
Unvested outstanding deferred remuneration (Shares and sharelinked instruments) HKD ’000
Vested outstanding deferred remuneration (Shares and share-linked
instruments) HKD ’000

11,104-

Awarded deferred remuneration HKD ’000

4,440

Paid out/vested deferred remuneration HKD ’000

9,141

Remuneration reductions
Deferred remuneration reduced through performance adjustments’000(1,266)

Total reductions due to ex post explicit adjustments HKD ’000

(2,056)

Total reductions due to ex post implicit adjustments HKD’000(196)

Total outstanding deferred remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000
Total outstanding retained remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000

12

11,104-

ANZ Basel III Pillar 3 disclosure

September 2019

Quantitative Disclosures for ANZBEL UK MRTs
The following quantitative disclosures are provided with reference to the ANZ Remuneration Policy andcurrent practices, and include individuals who met the definition of ANZBEL UK MRTs who are Senior
Management at any stage during the financial year up to 14 November 201816.
Table 5 (CRR Article 450 1(g)): Remuneration – by business area (GBP)
Financial Year 2019
ANZBEL Senior
Management and Risk
TakersNumber of people

6

Total remuneration GBP ’000

177

Table 6 (CRR Article 450 1(h(i), h(ii), h(v) and h(vi)): Remuneration - fixed, variable andother remuneration (GBP)
Table 7 provides a view of how remuneration is paid or communicated to individuals:


Fixed remuneration relates to amounts for/paid during the financial year up to 14 November 2018.



Variable remuneration relates to the communicated cash and equity values (fair value) for thefinancial year up to 14 November 2018.

No sign-on awards or termination/severance payments have been paid/granted/awarded in the financial
year up to 14 November 2018 to ANZBEL UK MRTs who are Senior Management.
Financial Year 2019
ANZBEL Senior
Management and Risk
TakersNumber of people

6

Fixed remuneration (cash – non-deferred) GBP ’000

163

Variable remuneration
Number of people

1

Cash (non-deferred) GBP ’000

4

Cash (deferred) GBP ’000

3

Shares and share-linked instruments (non-deferred) GBP ’000

4Shares and share-linked instruments (deferred) GBP ’000

3

Total variable remuneration GBP ’000

13

Total Remuneration GBP ’000

177

16

ANZBEL’s banking license was cancelled on 14 November 2018. Disclosure relating to UK MRTs contained in thisdocument is for the period 1 October 2018 to 14 November 2018.

13

ANZ Basel III Pillar 3 disclosure

September 2019

Table 7 (CRR Article 450 1(h(iii) and h(iv)): Deferred remuneration (GBP)
Values have been calculated using a 1-day volume weighted average price (VWAP) of ANZ shares onvesting date (paid out)/14 November 2018 (outstanding), multiplied by the number of shares/rights(face value). Reductions are determined comparing these values to the allocation value at grant.
Performance adjustments reflect lapses, due to performance conditions not being met and/or due tocessation of employment.
Financial Year 2019
ANZBEL Senior
Management and Risk
TakersDeferred remuneration
Unvested outstanding deferred remuneration GBP ’000

1,157

Vested outstanding deferred remuneration GBP ’000-

Awarded deferred remuneration GBP ’000-

Paid out/vested deferred remuneration GBP ’000
Deferred remuneration reduced through performance adjustments
GBP ’000-

Table 8 (CRR Article 450 1(i): Remuneration by band (GBP)
Table 8 provides a breakdown of the number of ANZBEL UK MRTs who are Senior Management and Risk
Takers who have been remunerated EUR 1 million or more for the financial year.
Total remuneration has been calculated including fixed remuneration, allowances, variable remunerationin relation to the performance year, and fees for Non-Executive Directors. Bands have been converted
using a rate of 1 EUR = 0.8893.
Financial Year 2019
Number of people
Deferred remuneration
890,000 GBP and above (1m EUR and above)-

14

ANZ Basel III Pillar 3 disclosure

September 201915