2021

BASEL III PILLAR
3 DISCLOSURE

AS AT 30 SEPTEMBER 2021
APS 330: REMUNERATION DISCLOSURE

ANZ Basel III Pillar 3 disclosure

September 2021

Important noticeThis document has been pre pared by Australia and Ne w Ze aland Banking Group Limited (ANZ) to meet its
disclosure obligations under:•
the Australian Prude ntial R e gulation Authority (APR A) Authorised De posit-taking Institutions
Prude ntial Standard (APS) 330: Public Disclosure as applicable to ANZ; and•the Hong Kong Monetary Authority (HKMA) Supervisory Policy Manual C G-5: Guideline on a SoundR e m uneration System (HKMA Guidelines) as applicable to ANZ’s Hong Kong (HK) branch.
This disclosure was pre pared as at 30 Se pte mber 2021. ANZ has a continuous disclosure policy, underwhich ANZ will im m ediately notify the m arket of any m aterial price se nsitive information conce rning theGroup, in accordance with le gislative and re gulatory disclosure re quirements.

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ANZ Basel III Pillar 3 disclosure

September 2021

Remuneration Disclosure
Basis of DisclosureThis document pre sents:• the 2021 financial ye ar (2021) re m uneration disclosures of Australia and Ne w Ze aland Banking
Group Lim ite d (ANZ), as re quire d by the Australian Prude ntial R e gulation Authority (APRA)
Authorised Deposit-taking Institutions Prudential Standard (APS) 330: Public Disclosure; and• the 2021 re muneration disclosures of ANZ, re lating to ANZ’s Hong Kong (HK) branch as re quiredby the Hong Kong Monetary Authority (HKMA) Supervisory Policy Manual C G-5: Guideline on aSound Remuneration System (HKMA Guidelines).
The disclosures contained in this document are based on information that is consistent with information
provided to ANZ’s e x te rnal auditor. Howe ve r, the inform ation provided is for re gulatory disclosure
purposes, rather than statutory financial re porting disclosures, and m ay not be com parable to otherinform ation disclosed by ANZ. Additional information on ANZ’s re muneration policies and structures iscontained in the ANZ 2021 Annual Report.
Bodies that oversee Remuneration
The ultimate re sponsibility for the sound and prudent management of re muneration at ANZ re sts with the
ANZ Board (Board). The Board is assisted in overseeing remuneration matters, including adhere nce to ANZ
re m uneration policies and practice s, by the Board Human R esource s Committee (HRC).
As at 30 September 2021, the HRC consisted of five members, all of whom are independent Non-Executive
Dire ctors 1. The HRC met six times during the 2021 financial year. Committee fees for the HRC chair for the2021 financial year we re AUD 57,000 and for HRC members we re AUD 29,000.
The purpose, powe rs and duties of the HR C are set out in the HRC C harter. The HR C pays particularatte ntion to the re muneration of the senior e xecutive population, the highest paid individuals, individuals
who could have a material impact on ANZ’s financial soundness, the remuneration structures of individuals
who pe rform a risk and financial control role, and adherence to the Australia and Ne w Ze aland Banking
Group Limited R emuneration Policy (ANZBGL Remuneration Policy).
The ANZBGL R emuneration Policy applies to all ANZ e mployees globally2, including:•

Senior Managers
Se nior Managers (at the ANZ le ve l) are the R e sponsible Pe rson role s as de tailed in ANZBGL’s
R e m uneration Policy. ANZ’s curre nt R esponsible Persons are the C EO, Group Ex ecutive Committee(Ex C o) m embers and other key roles identified in ANZ’s Fit and Proper Policy. For 2021, ANZ had
a total of 19 Se nior Manager role s (21 individuals due to m ovement in role s); 20 roles in 2020
(no m ovement in individuals who held these Senior Manager roles).

•Material Risk Takers
MR Ts (at the ANZ le ve l) are any other pe rsons (not cove red by the Se nior Manager de finition
above), for whom a significant portion of total remuneration is based on performance and whose
activitie s, individually or collectively, m ay affect ANZ’s financial soundness as determined by the
Board R isk C ommittee. For 2021, ANZ had a total of 29 MR T roles (no m ovement in individuals
who he ld these MRT roles); 32 roles in 2020 (34 individuals due to movement in roles).

•HK branch
W ith re spect to ANZ’s HK branch:o
Se nior Management and Ke y Personnel (re lative to the HK branch) – Se nior Management
include s those who are re sponsible for ove rsight 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 2021,
ANZ’s HK branch had a total of 12 Se nior Management and Ke y Personnel roles (13individuals due to movement in roles); 14 roles in 2020 (16 individuals due to movement
in role s).

Throughout the course of the ye ar the HR C has m ade all re m uneration-related de cisions andre com mendations to the Board independently of m anagement. The HRC also has fre e and unfettere d accessto ANZ e m ployees and to relevant e xternal providers, whe n re quired.

1

T he ANZ Board Chairman is an ex-officio member of the Committee and does not receive a C ommittee member fee.
E xcept employees within ANZ Bank N ew Zealand L imited and its s ubsidiaries, who are c overed by the ANZ New
Zealand (N Z) Remuneration Policy.

22ANZ Basel III Pillar 3 disclosure

September 2021

During 2021, the HR C and m anagement re ceived information from the following external providers: Aon,
Ashurst, EY, Me rcer C onsulting (Australia) Pty Ltd and Price waterhouseCoopers. This information related
to m ark et data, m arket practice s, analysis and m odelling, le gislative re quirements and the interpretationof governance and re gulatory requirements.
Design and Structure of Remuneration Processes
The ANZBGL R e muneration Policy provides the HR C and m anagement with a consistent framework form anaging re m uneration and re m uneration-related m atters. W he re ove rseas le gislative/regulatory
re quirements for foreign-owne d financial services companies e xceed the ANZBGL R emuneration Policy
re quirements, the ANZBGL Remuneration Policy has adopted specific country addendums or a local/country
spe cific policy (e.g. Ne w Ze aland (NZ) who operate under the ANZ NZ R e muneration Policy) to apply the
local le gislative re quirements to any impacte d employees in the re levant jurisdiction.
ANZ’s re m uneration framework addresses:•
R e m uneration mix and market positioning;•
Fix e d and variable re muneration;•
Downward adjustment (malus) of deferre d re muneration;•
Share holding guidelines and hedging prohibitions;•Inde pendence of Risk and Financial Control Personnel;•
R e quirements for othe r ANZ APR A R e gulated Entitie s and R e gistere d Supe rannuation Entity
Lice nsees and NZ, United Kingdom (UK), HK, Indonesia and C hina based e mployees; and•Engagement of re muneration consultants.
The objective of the ANZBGL Remuneration Policy is to shape ANZ’s remuneration strategies and initiatives
in line with the ANZ R e ward Principles and applicable le gal re quirements. O ur R eward Principles support
the achievement of ANZ’s purpose and strategy through programs that:•
Attract, m otivate and keep great people;•
R e ward our people for doing the right thing having re gard to our customers and shareholders;•
Focus on how things are achie ved (values, culture and risk ) as m uch as what is achieved(pe rformance); and•Are fair and simple to understand.
Pe rformance and re m uneration outcomes for all R isk and Financial C ontrol Pe rsonnel are de termined by
the appropriate reporting manager within these functions dire ctly, and not the business that the individual
supports. This e nsure s individuals are re munerated independently of the business they oversee.
The ANZBGL R emuneration Policy in its curre nt form was first introduced in February 2010 to comply withAPR A’s Prudential Standard C PS 510: Governance (C PS 510). A re vie w of the ANZBGL R emuneration Policy
is conducte d by management on an annual basis and the outcomes are re viewe d by the HRC and Board toe nsure that it re m ains appropriate for its inte nded purpose, and is com pliant with the APR A Prudential
Standard and the specific overseas legislative/regulatory requirements for fore ign-owne d financial services
com panies whe re re levant. The HRC re viewe d the ANZBGL R emuneration Policy in 2021 with m inor updates
approved by the Board at the time.
Remuneration at A NZ
Individual re muneration at ANZ is comprised of fixed remuneration and variable remuneration.
Fixed remuneration
Fix e d remuneration is designed to reward individuals for their skills and experience , and the accountabilityof the ir role. Fixed re muneration is re viewe d annually to e nsure ANZ’s re muneration re mains competitivein the m arkets in which it operates, having re gard to local market practices and affordability.
Variable remuneration
ANZ Ince ntive Plan (ANZIP) is the variable re m uneration plan operating across ANZ and is de signed toalign pe rformance to ANZ’s strate gic obje ctives and annual operating plan, fairly re ward our pe ople fordoing the right thing having re gard to our customers and shareholders, and align re m uneration withprude nt risk tak ing providing re le vant e m ployees with ‘at-risk ’ re ward com ponent(s) de signed to drive
pe rformance in both the short-term and m edium to long-term. The Board de cides the C EO’s variable
re m uneration outcomes separately to help mitigate potential conflicts of intere st.
ANZ’s variable re muneration is designed to take into account the following:•
The outcomes of business activities;•
The risk s re lated to the business activities taking into account, whe re re le vant, the cost of theassociated capital;•
The time necessary for the outcomes of those business activities to be re liably measured;•Be haviours which demonstrate ANZ’s Values and the delivery of outcomes that are fair and e thicaland in the best interests of our customers and aligned with ANZ’s purpose and C ode of C onduct;and3

ANZ Basel III Pillar 3 disclosure•

September 2021

Applicable legal and re gulatory (including prudential) re quirements.

As part of the design methodology, the following components are considered:•
Me asures of performance ;•The m ix of forms of re muneration (such as fixed and variable components, and cash and e quityre late d benefits); and•The timing of whe n the individual becomes e ligible to rece ive payment.
ANZIP has two k e y components:•
Group Performance Dividend (GPD):oAll pe rm anent ANZ e m ployees (excluding the C EO, Ex C o and the Group Ge neral Manager
Inte rnal Audit (GGM IA)), will be e ligible to re ceive a GPD subject to m eeting minimum
standards of performance and behaviour.
o
The GPD is determined and allocated based on Group performance only.
•

A t Risk Pay (A RP):o
A sm all proportion of permanent ANZ e mployees will be e ligible to re ceive an additional
discre tionary allocation of variable re m uneration based on Division, business andindividual pe rformance , subject to m e e ting m inimum standards of pe rformance andbe haviour.

For MR Ts who are also UK MRTs, the ratios betwe en fixed and variable re muneration do not e xceed 1:1.
To de te rmine and approve the ANZIP variable re m uneration pool (which include s the GPD and ARP
com ponents), the Board considers a range of factors – it is not a formulaic outcome. C onsiderations include:•
the balance betwe en financial and non-financial performance (includes performance against ANZ’sGroup Pe rformance Framework and consideration of cash profit and e conomic profit outcomes),
and the long-term (strengthening the bank);•
the balance of stakeholder needs and impacts (e.g. shareholders, customers and employees);•
the curre nt e nvironment, the quality of re sults and our R eward Principles.
Unde r the 2021 Group Performance Framework, performance against e xpectations was e valuated using a
range of obje ctive indicators and subje ctive considerations including m anagement input on work
unde rtaken, e vidence of outcomes re alised and le ssons le arned, and with consideration given to theope rating, re gulatory and com petitive e nvironment. The Group Pe rformance Fram ework is structured
around ANZ’s Group Strategic Priorities and include the following k ey performance categories:•
Risk (modifier 0% to 110%) –m e asurement is supported by a range of risk indicators such as
re gulatory bre aches, audit issues, risk culture survey re sults, progress in de livering re gulatory
com m itments, surve ys of corporate re putation sentiment and breaches of primary metrics in theGroup R isk Appetite Statement;•
Customer (35% weight) – includes indicators focused on enhancing e xperiences and outcomesfor our customers, such as se rvice quality and re liability, re m ediation activitie s, de livery ofinnovative customer solutions, and measures of customer satisfaction and perception;•
People and Culture (30% weight) – include s indicators re lated to work force , e ngagement,
dive rsity and capability.
•
Financial Discipline and Operational Resilience (35% weight) – includes strategye x e cution, re turns, cost discipline, liquidity and operational re silience indicators.
Pe rformance objectives within e ach division are strategically aligned to the Group Performance Framework,
including dedicated Group Performance we ightings to re inforce the importance of collective accountability
and contribution to the Group outcomes.
Individual pe rformance is assessed based on both behaviours re lating to ANZ’s Values, ANZ’s Code of
C onduct and – whe re applicable – ANZ’s le adership behaviours and the Banking Ex ecutive Accountability
R e gime (BEAR); and outcomes delivered against objectives. Where appropriate, adjustments will be madeto an individual’s performance assessment and variable re m uneration outcome, to re flect conduct which
doe s not m eet e xpected standards.
Delivery of variable remuneration
Mandatory deferral of a significant portion of variable remuneration places an incre ased emphasis on having
a variable structure that is flexible, continues to be performance linked, has significant re tention elements
and aligns the interests of e mployees to shareholders to de liver against strategic obje ctives. The key
considerations informing the proportion of re m uneration de livered as de ferre d re m uneration include
re le vant re gulatory re quirements, m arket practice (locally, inte rnationally and by role /business), risk
m anagement, and our accountability and consequence framework (which provides ANZ with on-going andabsolute discre tion to downward adjust all deferre d remuneration – including to zero).

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ANZ Basel III Pillar 3 disclosure

September 2021

CEO, ExCo and GGM IA
2021 variable remuneration is delivered as follows:
Delivered as

CEO

ExCo1

CRO
and GGM IA

Mandatory
Deferral period

C ash

50% of Annual
VariableR e m uneration

25% of variable
re m uneration

33% of variable
re m uneration

Nil

De fe rre d shares orshare rights

50% of Annual
VariableR e m uneration

25% of variable
re m uneration

33% of variable
re m uneration

Four ye ars withstaggered vesting2

50% of variable
re m uneration5

34% of variable
re m uneration

Four ye ars

Pe rformance rights3 100% of Long Term(or de ferre d share
Variablerights 4)
R e m uneration

Other Employees
Variable remuneration is delivered in cash up to the m andatory deferral threshold. In 2021:•
If an employee’s variable re muneration is below AUD100,000 (or local currency equivalent), thenthe variable remuneration is paid in cash.
•
If an e m ployee’s variable re muneration is at or e x ce eds AUD100,000, the n 60% m andatory
de fe rral will apply to the entire variable remuneration award.
oO f the variable remuneration award:
40% will be paid in cash (no deferral);
20% will be de ferre d as ANZ e quity for 1 ye ar;
20% will be de ferre d as ANZ e quity for 2 ye ars; and
20% will be de ferre d as ANZ e quity for 3 ye ars.
The HR C re vie ws the thre sholds at which m andatory de fe rral is applied, the quantum of variable
re m uneration which is subject to deferral and the time period over which deferral occurs.

1

E xcluding Chief Risk O fficer (CRO)
D eferred s hares or s hare rights will vest:- For the CEO and E xCo (excluding CRO): 4 0% after one year, 3 0% after two years, 20% after three years and 10%
after four years.
- For the C RO and G GM IA: 30% after one year, 30% after two years, 2 0% after three years and 2 0% after four years.
3
A fac e value methodology is used to determine the number of performance rights allocated. 2021 performance rights
granted in N ovember/December 2021 are divided into two tranches: Tranche 1 (75%) ANZ Total Shareholder Return(T SR) relative to a s elect financial services c omparator group and Tranche 2 (2 5%) ANZ TSR against ANZ Compound
A nnual G rowth Rate (CAGR) T SR target set by the Board .
4
T he CRO and G GM IA receive deferred share rights, instead of performance rights, to preserve the independence intheir respective roles and to minimise any conflicts of interest.
5
P erformance rights face value at full vesting.
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September 2021

UK MRTsFor MR Ts who are also classified as UK MRTs and who do not m eet the ‘de minimis’ rule1, are e ligible toparticipate in ANZ’s variable remuneration plans whe re applicable for their role, and payments will bem ade in accordance with the UK’s PRA Remuneration C ode re quirements as below, depending on what
type of UK MRT they are:(a) MRT - PRA
Senior Manager2
Deferred A mount(b) MRT - Risk
Manager3(c) MRT –Not (a) or (b)At le ast 60% for variable remuneration e qual to or greater than GBP
500,000.
At le ast 40% for variable remuneration le ss then GBP 500,000.

Equity / Cash

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

Vesting Period fordeferred portion

7 ye ars from award
with no ve sting until 3
ye ars after award ve sting no faster thanpro-rata at the end ofe ach ye ar on and after
the 3 rd ye ar.

Vesting Period fornon-deferred
portionVe sts immediately at grant.

Retention Period fordeferred and nondeferred portion

Equity (both deferre d and non-deferred) will be subject to a R etention Periodof 12 m onths from vesting.

Malus

All unve sted awards are subje ct to re duction, including to zero, using m alus.

Clawback

All ve ste d awards will be subje ct to re covery using clawback.

Clawback Period

7 ye ars from award. C an be incre ased to at least
10 ye ars in ce rtain circumstances. 4

5 ye ars from award ve sting no faster thanpro-rata at the end ofe ach ye ar.

3 ye ars from award ve sting no faster thanpro-rata at the end ofe ach ye ar.

7 ye ars from award.

1
C ertain requirements of the U K’s PRA Remuneration Code relating to the structure of an individual’s remuneration do
not apply to a U K MRT who meets the ‘de minimis’ rule. T his is where variable remuneration is less than 33% of total
remuneration and total remuneration is less than G BP 500,000.
2
Senior M anagers are MRTs who perform a PRA s enior management function.
3
Ris k M anagers are MRTs who do not perform a P RA 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 ac ommittee referred to therein), 3 (13) or 3 (15) of the EU MRTs Regulation.
4
C ircumstances are where: (a) the firm has c ommenced an investigation into facts or events which it c onsiders could
potentially lead to the application of c lawback 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 c ommenced into facts or events which the firmc onsiders c ould potentially lead to the application of c lawback by the firm were it not for the expiry of the c lawback
period.

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ANZ Basel III Pillar 3 disclosure

September 2021

China MRTs
To e nsure compliance with the China Banking and Insurance R egulatory C ommission Supervisory
Guide lines on Sound C ompensation of C ommercial Banks [Yin Jian Fa (2010) No.14], deferralarrangements for MRTs who are also classified as C hina MRTs are as followe d:
For the m ost senior
C hina MRT roles

For othe r C hina MRT
role sIf the deferred perce ntage of variable re muneration, as calculated inaccordance with ANZ’s standard deferral arrangements is:• at or e x ceeds 50% of variable re muneration, then ANZ’s standard deferralarrangements apply; or• is le ss than 50% then mandatory deferral will apply as follows:o
50% will be paid in cash (no deferral); ando
50% will be de ferre d as ANZ e quity e venly over 1, 2 and 3 ye ars.

If the deferred perce ntage of variable re muneration, as calculated inaccordance with ANZ’s standard deferral arrangements is:• at or e x ceeds 40% of variable re muneration, then ANZ’s standard deferralarrangements apply; or• is le ss than 40% then mandatory deferral will apply as follows:o
60% will be paid in cash (no deferral); ando
40% will be de ferre d as ANZ e quity e venly over 1, 2 and 3 ye ars.

Downward adjustment (malus)
All de ferre d remuneration ANZ award to an employee re mains at risk and is subject to ANZ’s on-going andabsolute discretion to adjust this downward (malus) (including to zero) at any time. ANZ m ay exercise thisdiscre tion, for e xample, whe re :• the re is a need to protect the financial soundness of ANZ or to m e et re gulatory re quirements or
the re has been a material failure of risk management or controls within ANZ;
• the e mployee has acted fraudulently or dishonestly, failed to act with due care, skill and diligence,or faile d to com ply with ANZ Group policie s (including the C ode of C onduct), proce sses ordire ctions;• the e m ployee is re sponsible or accountable, directly or indirectly, by virtue of their role or seniority
for an occurre nce/event which has had an adverse impact on ANZ;
• the re has been m isconduct and the e mployee was involved directly or indire ctly, failed to takeade quate steps, could be considered re sponsible due to their seniority, or the decision to award
or grant the deferred re muneration was made on the basis of misinformation.
Furthe r, if an Accountable Ex ecutive of ANZ has failed to comply with their accountability obligations underthe BEAR , the ir deferred re muneration will be re duced by an amount that is proportionate to the failure,
as re quired by BEAR .
An e m ployee’s deferred re muneration is also subject to ANZ’s on-going and absolute discretion to further
de fe r the ve sting. W here ANZ e x e rcises this discre tion, the ve sting date is postponed and will not vest
unle ss and until ANZ de termines it should vest.
Be fore any scheduled ve sting of deferred re muneration, the Board (for the C EO, Ex Co and other specified
role s) and/or the Ente rprise Accountability Group (for other e mployees) considers whe ther downward
adjustment (malus) or further deferral should be applied.
For MR Ts who are also UK or China MRTs, whe re remuneration has vested (and during the retention period
for UK MR Ts) and:•the e mployee participated in or was responsible for conduct which re sulted in significant losses tothe firm , or failed to meet appropriate standards of fitness or propriety (or both); or•
the re is re asonable e vidence 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 re cover and/or re quest re payment of ve sted variable
re m uneration in any circumstance that it determines is re asonable.

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ANZ Basel III Pillar 3 disclosure

September 2021

Current and Future Risks
ANZ has a Group-wide risk management framework which provides the methodology and tools required tode al with the full range of risks managed within ANZ, both at the Group level and individual business level,and provides the m eans to pre pare for e merging risks.
R isk appetite is set using both qualitative and quantitative m easures across the major risk classes including
liquidity, m ark et, financial, cre dit and ope rational risk (including risk s with com pliance , conduct or
te chnology drivers) to ensure business objectives and performance are measure d and monitored on a riskadjusted basis and within appetite.
To e nsure consistent monitoring year on year, the Board considers performance against a number of factors
to de te rmine the ANZIP variable re muneration pool, including the Group Performance Framework ande conomic profit (a risk -adjusted financial m easure). This helps to e nsure that the variable re muneration
pool is shaped by risk considerations. The C RO and Chief Financial O fficer re view and provide input to theBoard/HRC on the ANZIP variable re muneration pool.
The ANZBGL R e muneration Policy e nsures the design, m onitoring, m easurement and de termination ofre m uneration outcomes occur with consideration against the risk management framework.
The de sign and operation of all variable re muneration plans are re quired to adhere to a set of policy
principles and governance standards which re quire the approval of the Finance, R isk, and Talent andC ulture functions.
Individual variable re muneration awards are m ade on the basis of a risk adjusted vie w of pe rformance,
including performance against any financial and non-financial e lements re levant to each individual’s role.
Howe ve r, if the assessment of performance subsequently proves to be inaccurate or incorrect, the unvested
de fe rred awards can be adjusted downward as outlined in the Downward adjustment (malus) section.

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ANZ Basel III Pillar 3 disclosure

September 2021

Quantitative Disclosures for A NZ Senior Managers and Material Risk Takers
The following quantitative disclosures are provided with re ference to the ANZBGL Remuneration Policy andcurre nt practice s, and include individuals who m e t the de finitions of ANZ Se nior Manager or MRT at any
stage during the financial year.
Table 1 (A PS 330, Table 22 (h) and 22 (j)): Remuneration - fixed, variable and other
remuneration (A UD)
Table 1 provides a view of how re muneration is paid or communicated to individuals, and is consistent with
the Variable R emuneration Awarde d and Actual R emuneration R eceived tables in the 2021 R emuneration
R e port.
Spe cifically, fix e d re m uneration re lates to am ounts for/paid during the financial ye ar and variable
re m uneration re lates to the communicated cash and e quity values for the financial year.
This approach has been chosen over the Statutory Remuneration Disclosure approach (i.e. the inclusion of
cash variable re muneration for the financial ye ar and also the accounting e xpense of prior ye ar variable
re m uneration share-based payments in the financial ye ar) as it provides greater transparency to the value
com m unicated to individuals for the financial year.
All Se nior Manager and MRT deferred re muneration is deferre d into e quity e xcept for MR Ts who are also
UK MR Ts, who re ceive deferred remuneration 50% in cash and 50% in equity.
No guaranteed bonuses, sign-on awards or te rmination/severance payments1 have been paid/granted in
the financial ye ar to Se nior Management or MRTs, e xcept for one role in 2020 who re ce ived an e x-gratia
paym ent upon te rm ination. The te rm ination paym ent has not be e n disclosed be low to e nsure
confidentiality.
Financial Year 2021
N umber of people
Fixed remuneration (c ash – non-deferred) AUD ’000

Senior M anagement

M RTs

21

29

2 0 ,292

1 6 ,319

Variable remuneration
N umber of people

1929

1 0 ,114

8 ,4 71

C ash (deferred) AUD ’000-

417

Shares and share-linked instruments (non-deferred) AUD ’0 00-

626

2 1 ,577

1 3 ,228

C ash (non-deferred) AUD ’0 00

Shares and share-linked instruments (deferred) AUD ’0 00

Financial Year 2020
N umber of people
Fixed remuneration (c ash – non-deferred) AUD ’000

Senior M anagement

M RTs

21

34

2 0 ,048

1 7 ,840

Variable remuneration
N umber of people

1930

7 ,0 80

9 ,3 20

C ash (deferred) AUD ’000-

392

Shares and share-linked instruments (non-deferred) AUD ’0 00-

588

1 2 ,482

1 3 ,435

C ash (non-deferred) AUD ’0 00

Shares and share-linked instruments (deferred) AUD ’0 00

1

N on-contractual items.

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ANZ Basel III Pillar 3 disclosure

September 2021

Table 2 (A PS 330, Table 22 (i) and 22 (k)): Deferred remuneration exposed to implicit andexplicit adjustments (A UD)
Value s have been calculated using a 1-day volume we ighted average price (VW AP) of ANZ shares onve sting date (paid out)/30 September 2021 (outstanding), multiplied by the number of shares/rights (facevalue ). Reductions are determined comparing these values to the allocation value at grant. All outstanding
de fe rred re muneration is e xposed to ex post e xplicit and implicit adjustments.
Ex plicit adjustments re flect lapses, due to performance conditions not being met and/or due to cessationof e m ployment. Implicit adjustments re flect share price reductions in the value of e quity from grant.
In 2021 and 2020, all Se nior Managers and MRT deferre d re muneration was deferred into e quity, except
thre e UK-based e mployees who re ce ive the ir variable re muneration half in e quity and half in cash inaccordance with UK re gulatory re quirements.
Financial Year 2021
Senior M anagement

M RTs

Def erred remuneration paid out
V ested cash $’000
V ested shares and s hare-linked instruments $ ’000-

166

1 2 ,092

1 0 ,888

Outstanding def erred remuneration
U nvested c ash $ ’000
U nvested s hares and s hare-linked instruments $ ’000-

883

5 6 ,031

3 1 ,596

Def erred remuneration reductions
T otal reductions due to ex post explicit adjustments $’000(1 5 ,016)(5 0 7)

T otal reductions due to ex post implicit adjustments $ ’000

(2 ,5 56)

(1 ,2 75)

Financial Year 2020
Senior M anagement

M RTs

Def erred remuneration paid out
V ested cash $’000
V ested shares and s hare-linked instruments $ ’000-

461

6 ,5 55

1 2 ,518

Outstanding def erred remuneration
U nvested c ash $ ’000-

794

4 1 ,567

1 9 ,215

T otal reductions due to ex post explicit adjustments $’000(9 ,2 48)

(1 ,6 38)

T otal reductions due to ex post implicit adjustments $ ’000

(2 1 ,777)(8 ,4 15)

U nvested s hares and s hare-linked instruments $ ’000
Def erred remuneration reductions

10

ANZ Basel III Pillar 3 disclosure

September 2021

Quantitative Disclosures for A NZ HK branch
The following quantitative disclosures are provided with re ference to the ANZBGL Remuneration Policy andcurre nt practices, and include individuals who met the definition of Se nior 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 re m uneration is paid or communicated to individuals:Fix e d remuneration re lates to amounts for/paid during the financial year.
Variable re muneration re lates to the communicated cash and e quity values (fair value) for the financial
ye ar.
No guaranteed bonuses, sign-on awards or te rm ination/severance paym ents1 have been
paid/granted/awarded in the financial ye ars 2021 and 2020 to Se nior Management and Key Personnel for
the ANZ HK branch.
Financial Year 2021
H K Senior Management
and Key Personnel
N umber of people

13

Fixed remuneration (c ash – non-deferred) HKD ’0 00

3 3 ,302

Variable remuneration
N umber of people

13

C ash (non-deferred) H KD ’0 00

6 ,7 73

C ash (deferred) HKD ’0 00-

Shares and share-linked instruments (deferred) HKD ’0 00

7 ,8 34

T otal variable remuneration H KD ’000

1 4 ,607

Total Remuneration H KD ’000

4 7 ,909

Financial Year 2020
H K Senior Management
and Key Personnel
N umber of people

16

Fixed remuneration (c ash – non-deferred) HKD ’0 00

3 8 ,897

Variable remuneration
N umber of people

15

C ash (non-deferred) H KD ’0 00

6 ,0 13

C ash (deferred) HKD ’0 00-

Shares and share-linked instruments (deferred) HKD ’0 00

5 ,3 80

T otal variable remuneration H KD ’000

1 1 ,393

Total Remuneration H KD ’000

1

5 0 ,290

N on-contractual items.

11

ANZ Basel III Pillar 3 disclosure

September 2021

Table 4 (HKMA CG-5 (h), (i), (j), (l)): Deferred remuneration (HKD)
Value s have been calculated using a 1-day volume we ighted average price (VW AP) of ANZ shares onve sting date (paid out)/30 September 2021 (outstanding), multiplied by the number of shares/rights (facevalue ). R eductions are determined comparing these values to the allocation value at grant.
Pe rformance adjustments re flect lapses, due to pe rformance conditions not be ing m et and/or due toce ssation of employment.
Financial Year 2021
H K Senior Management
and Key Personnel
Def erred remuneration
U nvested outstanding deferred remuneration (Cash) H KD ’000
U nvested outstanding deferred remuneration (Shares and s harelinked instruments) HKD ’0 00
V ested outstanding deferred remuneration (Shares and s hare-linked
ins truments) H KD ’000
A warded deferred remuneration H KD ’0 00

1 6 ,859
5 ,5 03

P aid out/vested deferred remuneration HKD ’000

6 ,4 42

Remuneration reductions
D eferred remuneration reduced through performance adjustments’0 0 0T otal reductions due to ex post explicit adjustments HKD ’0 00(1 3 2)(1 3 2)

T otal reductions due to ex post implicit adjustments H KD’000
T otal outstanding deferred remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000
T otal outstanding retained remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000(4 1 1)
1 6 ,859
Financial Year 2020
H K Senior Management
and Key Personnel

Def erred remuneration
U nvested outstanding deferred remuneration (Cash) H KD ’000
U nvested outstanding deferred remuneration (Shares and s harelinked instruments) HKD ’0 00
V ested outstanding deferred remuneration (Shares and s hare-linked
ins truments) H KD ’000
A warded deferred remuneration H KD ’0 00
P aid out/vested deferred remuneration HKD ’000

1 0 ,186
6 ,8 73
6 ,1 21

Remuneration reductions
D eferred remuneration reduced through performance adjustments’0 0 0T otal reductions due to ex post explicit adjustments HKD ’0 00
T otal reductions due to ex post implicit adjustments H KD’000
T otal outstanding deferred remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000
T otal outstanding retained remuneration exposed to ex post explicit
and/or implicit adjustments HKD’000

12(6 0 2)(6 0 2)(3 ,3 18)
1 0 ,186-

ANZ Basel III Pillar 3 disclosure

September 202113