2018 BASEL III PILLAR 3DISCLOSURE

AS AT 30 SEPTEMBER 2018
APS 330:REMUNERATIONDISCLOSURE

ANZ Basel III Pillar 3 disclosure

September 2018

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 2018. 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 2018

Remuneration Disclosure
Basis of DisclosureThis document presents:• the 2018 financial year (2018) 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 2018 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 2018 remuneration disclosures of ANZ, relating to employees identified as United Kingdom(UK) Material Risk Takers (UK 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 R.
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 2018 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).
The HRC met eight times during the 2018 financial year. Committee fees for the HRC chair for the 2018
financial year were AUD 57,000 and for HRC members were AUD 29,000.
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 ANZ Remuneration Policy.
The ANZ 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 ANZ’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
2018, ANZ had a total of 26 Senior Manager roles (32 individuals due to movement in roles); 26
roles in 2017 (30 individuals due to movement in roles).

•Material Risk Takers
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 soundnessof ANZ. For ANZ these are Senior Executives who can influence the Group’s capital, funding andliquidity, market risk, underwriting risk, and/or credit and counterparty risk. For 2018 ANZ had atotal of 6 Material Risk Taker roles (7 individuals due to movement in roles); 6 roles in 2017 (6individuals).

•

HK branch
With respect to ANZ’s HK branch:o Senior 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 2018, ANZ’s HK branch had a total of 10 Senior Management and Key
Personnel roles (12 individuals due to movement in roles); 11 roles in 2017 (12individuals due to movement in roles).

•

ANZBEL UK Material Risk Takers
With respect to ANZ’s UK operations for ANZBEL, UK MRT employees include:o Senior Management and Risk Takers (relative to the UK operations for ANZBEL) –Senior Management includes those performing Significant Influence Functions. Risk

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ANZ Basel III Pillar 3 disclosure

September 2018

Takers includes those whose professional activities have a material impact on the firm’s
risk profile. For 2018, ANZ’s UK operations for ANZBEL had a total of 6 Senior
Management and Risk Taker roles (6 individuals); 5 roles in 2017 (6 individuals due tomovement in roles).
As at 30 September 2018, the HRC consisted of five members, all of whom are independent NonExecutive Directors 1.
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 2018, the HR Committee and management received information from the following external
providers: Aon, Ashurst, Ernst & Young, Mercer Consulting (Australia) Pty Ltd andPricewaterhouseCoopers. This information related to market data, market practices, legislativerequirements and the interpretation of governance and regulatory requirements.
Design and Structure of Remuneration Processes
The ANZ Remuneration Policy provides the HRC and management with a consistent framework for
managing remuneration and remuneration-related matters. Where overseas legislative/regulatory
requirements for foreign-owned financial services companies exceed ANZ’s Remuneration Policy
requirements, the ANZ Remuneration Policy has adopted specific country addendums to apply the local
legislative requirements 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 New Zealand, UK, HK and Indonesia based employees; and•Engagement of remuneration consultants.
The objective of the ANZ 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 ANZ 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 ANZRemuneration Policy is conducted by management on an annual basis and the outcomes are reviewed by
the HRC and Board to ensure that it remains appropriate for its intended purpose, and is compliant with
the APRA Prudential Standard and the specific overseas legislative/regulatory requirements for foreignowned financial services companies where relevant. The HRC last reviewed the ANZ Remuneration Policy
in May 2018 with minor updates approved by the Board at the time. The HRC and Board havedetermined that the ANZ Remuneration Policy and its specific country addendums remain appropriate for
their intended purpose and are compliant.

1

ANZ Board Chairman is an ex-officio member of the Committee and does not receive a Committee member fee.

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ANZ Basel III Pillar 3 disclosure

September 2018

Remuneration at ANZ
ANZ’s incentive spend is adjusted each year to reflect ANZ’s performance outcomes, and is approved 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.
The Board has an on-going discretion to reduce (including to zero) deferred remuneration 2, if the Board
considers such a reduction to be necessary or appropriate. This discretion may be exercised, forexample, where the Board considers this is necessary to protect the financial soundness of ANZ, to meet
unexpected or unknown regulatory requirements or if the Board subsequently considers that the grant
was not justified.
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 incentive 3 opportunity and a long term
incentive 4 opportunity, or a blended variable remuneration opportunity.
For UK MRTs, the ratios between fixed and variable remuneration do not exceed 1:1.
ANZ Incentive Plan (ANZIP)The ANZ Incentive Plan (ANZIP) is designed to align performance to ANZ’s strategic objectives andannual operating plan, fairly reward employees and encourage performance without encouraging undue
risk taking. It is a discretionary incentive plan operating across ANZ, covering the majority of employees.
To determine and approve the ANZIP incentive pool, the Board considers Economic Profit performancealongside performance against a balanced scorecard of measures.
For 2018, the key performance measures under each of the balanced scorecard categories used to assess
performance for ANZIP are provided below. ANZ has used a balanced scorecard approach for a number ofyears. The scorecard covers the following categories:•
Risk measures – adherence is measured through a range of risk indicators derived fromInternal Audit reporting, risk systems, controls and processes including anti-money laundering,know your customer or sanctions breaches, and breaches of primary metrics in Group Risk
Appetite Statement;•
Financial and Discipline measures – including strategy execution, profitability, returns, andfunding and liquidity measures;•
Customer measures – including customers as advocates, and delivering digital solutions
measures;

Including restricted remuneration for the CEO.
Also referred to as Annual Variable Remuneration (AVR).
4
Also referred to as Long Term Variable Remuneration (LTVR).
2
3

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ANZ Basel III Pillar 3 disclosure•

September 2018

People and Reputation measures – including diversity, engagement, sustainability, andpeople and reputation measures.

Performance measures within each of the division’s balanced scorecards are strategically aligned to theperformance measures within the ANZ balanced scorecard.
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 and individual performanceoutcomes for all employees. Each individual’s performance is assessed at year end against their agreed
balanced scorecard of financial and non-financial objectives. Demonstration of the ANZ Values and anassessment of compliance, risk management and behaviour forms a fundamental aspect of theperformance assessment. Risk and Compliance input is a critical part of the assessment process indetermining the performance of ANZ and in ensuring that individual remuneration has been appropriately
assessed with regard to risk. Individual reward outcomes are then determined, taking into consideration
both the individual’s 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.
For the CEO and ExCo for 2018, variable remuneration is delivered as follows.
Delivered as

CEO

ExCo

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 in equal
tranches over four years

Performance rights 5

100% of long term
incentive

34% of variable
remuneration 6

Three years (plus 1 year
restriction for the CEO)For all other employees, incentives are delivered in cash up to the mandatory deferral threshold. In
2018:•
If an employee’s incentive is below AUD150,000 (or local currency equivalent), then the
incentive is paid in cash.
•
If an employee’s incentive is at or exceeds AUD150,000, then mandatory deferral will apply:o The first AUD80,000 of the incentive is paid in cash (no deferral);o Of the incentive 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 7 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 (and the end of the 1 year restriction for the CEO performance rights).
UK MRTs who do not meet the ‘de minimis’ rule 8 are eligible to participate in ANZ’s incentive plans whereapplicable for their role, and payments will be made in accordance with the Code requirements as below(for performance years beginning on or after 1 October 2017), depending on what type of MRT they are:

A face value methodology is used to determine the number of performance rights allocated to the CEO and ExCo. 2018
performance rights granted in November/December 2018 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.
6
Deferred share rights for the CRO, instead of performance rights, to ensure greater impartiality and independence of
this role.
7
For Senior Executives, unless the Board determines otherwise, this will be delivered as 50% shares (or share rights)
and 50% hurdled performance rights (subject to ANZ TSR relative to a select financial services comparator group).
55ANZ Basel III Pillar 3 disclosure(a) MRT - PRA Senior
Manager 9

September 2018(b) MRT - Risk Manager 10(c) MRT - Not (a) or (b)DeferredAmountAt least 60% for variable remuneration equal to or greater than GBP 500,000.

Equity / Cash

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

Vesting
Period fordeferred
portion7 years from award withno vesting until 3 years
after award - vesting nofaster than pro-rata at
the end of each year on
and after the 3rd year.

Vesting
Period fornon-deferred
portion

Vests immediately at grant.

Retention
Period fordeferred andnon-deferred
portionEquity (both deferred and non-deferred) will be subject to a Retention Period of 12months 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
Period7 years from award. Can be increased to at least 10
years in certain circumstances. 11

At least 40% for variable remuneration less then GBP 500,000.

5 years from award vesting no faster than prorata at the end of each year.

3 years from award vesting no faster than prorata at the end of eachyear.

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.
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.
8
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.
9Senior Managers are material risk takers who perform a PRA senior management function.
10
Risk Managers are material risk takers 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 a committee referred to therein), 3(13) or 3(15) of the EU Material Risk Takers Regulation.
11
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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September 2018

To ensure consistent monitoring year on year, the Board considers performance against a balanced
scorecard of measures to determine incentive pools. This helps to ensure that incentive pools are shapedby risk considerations. The Chief Risk Officer (CRO) reviews and provides input to the Board/HRC on
incentive pools taking into consideration the risk and return tradeoffs.
The ANZ Remuneration Policy through the risk management framework ensures the design, monitoring,measurement and remuneration outcomes occur within the broader framework of ANZ’s risk
management targets and thresholds.
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 incentive awards are made on the basis of a risk adjusted view of both financial and nonfinancial performance. However, if the assessment of performance subsequently proves to be inaccurate
or incorrect, the unvested deferred awards can be adjusted downward by the Board.
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 Material Risk
Taker 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 2018
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 incentives for the financial year and also the accounting expense of prior year incentive sharebased payments in the financial year) as it provides greater transparency to the value communicated toindividuals for the financial year.
All Senior Manager and Material Risk Taker 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 Material Risk Takers, except for one role in 2018 and two roles in 2017
who received relocation benefits upon termination. The termination payments have not been disclosed
below for these roles to ensure confidentiality.
Financial Year 2018
Senior Management
Number of people
Fixed remuneration (cash – non-deferred) AUD ’000

Material Risk Takers

32

7

20,7163,176

Variable remuneration
Number of people

27

6Cash (non-deferred) AUD ’000

9,854

2,806

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

17,3593,618

Financial Year 2017
Senior Management
Number of people
Fixed remuneration (cash – non-deferred) AUD ’000

Material Risk Takers

30

6

21,744

3,384

Variable remuneration
Number of people

23

6Cash (non-deferred) AUD ’000

12,410

4,747

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

22,293

6,400

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ANZ Basel III Pillar 3 disclosure

September 2018

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 2018 (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 2017 and 2018, all Senior Manager and Material Risk Taker deferred remuneration was deferred into
equity.
Financial Year 2018
Senior Management

Material Risk Takers

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

Financial Year 2017
Senior Management

Material Risk Takers

Deferred remuneration paid out
Vested cash $’000

1,112

-

Vested shares and share-linked instruments $’000

20,061

4,856

Outstanding deferred remuneration
Unvested cash $’000

1,000

-

Unvested shares and share-linked instruments $’000

71,09016,406

Total reductions due to ex post explicit adjustments $’000(15,022)(1,408)

Total reductions due to ex post implicit adjustments $’000(1,104)(423)

Deferred remuneration reductions

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 payments 12 have been
paid/granted/awarded in the financial years 2018 and 2017 to Senior Management and Key Personnel for
the ANZ HK branch.

12

Non-contractual items.

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ANZ Basel III Pillar 3 disclosure

September 2018
Financial 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

2,635

Total variable remuneration HKD ’000

7,977

Total Remuneration HKD ’000

28,699Financial Year 2017
HK Senior Management
and Key Personnel

Number of people

12

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

24,712

Variable remuneration
Number of people

7

Cash (non-deferred) HKD ’000

5,456

Cash (deferred) HKD ’000-

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

3,500

Total variable remuneration HKD ’000

8,956

Total Remuneration HKD ’000

33,668

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 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 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
Awarded deferred remuneration HKD ’000
Paid out/vested deferred remuneration HKD ’000

11,1044,440
9,141

Remuneration reductions
Deferred remuneration reduced through performance adjustments’000
Total reductions due to ex post explicit adjustments HKD ’000
Total reductions due to ex post implicit adjustments HKD’000
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(1,266)(2,056)(196)
11,104-

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September 2018
Financial Year 2017
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
Awarded deferred remuneration HKD ’000

1,935

Paid out/vested deferred remuneration HKD ’000

5,087

9,602
2,362

Remuneration reductions
Deferred remuneration reduced through performance adjustments’000
Total reductions due to ex post explicit adjustments HKD ’000

(482)

Total reductions due to ex post implicit adjustments HKD’000
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

(543)
9,602
-

Quantitative Disclosures for ANZBEL UK Material Risk Takers
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.
Table 5 (CRR Article 450 1(g)): Remuneration – by business area (GBP)
Financial Year 2018
ANZBEL Senior
Management and Risk
TakersNumber of people

6

Total remuneration GBP ’000

1,366

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.

Variable remuneration relates to the communicated cash and equity values (fair value) for thefinancial year.

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

6

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

1,366

Variable remuneration
Number of people

3

Cash (non-deferred) GBP ’000

176

Cash (deferred) GBP ’000

71

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

106

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

108

Total variable remuneration GBP ’000

461

Total Remuneration GBP ’000

1,827

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September 2018

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)/30 September 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 2018
ANZBEL Senior
Management and Risk
TakersDeferred remuneration
Unvested outstanding deferred remuneration GBP ’000

1,275

Vested outstanding deferred remuneration GBP ’000-

Awarded deferred remuneration GBP ’000

264

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

470
(168)

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 = 0.8896.
Financial Year 2018
Number of people
Deferred remuneration
890 – 1,334 GBP '000 (1m – 1.5m EUR)

011

ANZ Basel III Pillar 3 disclosure

September 201812