2016

BASEL IIIPILL AR 3
DISCLOSURE

AS AT 30 SEPTEMBER 2016
APS 330: REMUNERATION DISCLOSURE

ANZ Basel III Pillar 3 disclosure

September 2016

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) ADI 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 2016. 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 2016

Remuneration Disclosure
Basis of DisclosureThis document presents:
 the 2016 financial year (2016) remuneration disclosures of Australia and New Zealand Banking
Group Limited (ANZ), as required by the Australian Prudential Regulation Authority (APRA) ADI
Prudential Standard (APS) 330: Public Disclosure; the 2016 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 2016 remuneration disclosures of ANZ, relating to employees identified as United Kingdom(UK) Remuneration Code Staff (UK Code Staff) 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 2016 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 six times during the 2016 financial year. Committee fees for the HRC chair for the 2016
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 Australia and New Zealand Banking Group Limited 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 2016, ANZ had a total of 26 Senior Manager roles(33 individuals due to movement in roles); 22 roles in 2015 (23 individuals due to movement inroles).



Material Risk Takers
Material Risk Takers (MRT) (at the Australia and New Zealand Banking Group Limited 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 orcollectively, may affect the financial soundness of ANZ. For ANZ these are Senior Executives
who can influence the Group’s capital, funding and liquidity, market risk, underwriting risk,
and/or credit and counterparty risk. For 2016 ANZ had a total of 9 Material Risk Taker roles (11individuals due to movement in roles); 7 roles in 2015 (7 individuals).



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 2016, ANZ’s HK branch had a total of 11 Senior Management and Key
Personnel roles (13 individuals due to movement in roles); (11 roles in 2015 (12individuals).



ANZBEL UK Code Staff
With respect to ANZ’s UK operations for ANZBEL, UK Code Staff employees include:o Senior 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

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ANZ Basel III Pillar 3 disclosure

September 2016

risk profile. For 2016, ANZ’s UK operations for ANZBEL had a total of 6 Senior
Management and Risk Taker roles (6 roles in 2015).
As at 30 September 2016, the HRC consisted of four members, all of whom are independent NonExecutive Directors1.
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 advisors, when required.
During 2016, management commissioned information, which was provided to the HRC, from external
advisors including Aon Hewitt, Ashurst, Ernst & Young, Herbert Smith Freehills, Korn Ferry Hay Group,
McLagan, Mercer Consulting (Australia) Pty Ltd and PricewaterhouseCoopers. Information received fromexternal advisors related to market data and market practice information, legislative requirements andinterpretation 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 primary objectives of the ANZ Remuneration Policy are:
creating and enhancing value for all ANZ stakeholders;emphasising the ‘at risk’ components of total rewards to increase alignment with shareholders
and encourage behaviour that supports the long term financial soundness and the risk
management framework of ANZ, and the delivery of superior long term total shareholder
returns;differentiating rewards in line with ANZ’s culture of rewarding for outperformance anddemonstration of behaviours aligned with ANZ’s values (Integrity, Collaboration, Accountability,
Respect and Excellence); andproviding a competitive reward proposition to attract, motivate and retain the highest quality
individuals in order to deliver ANZ’s business and growth strategies.
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. An effectiveness review of the ANZ Remuneration
Policy is conducted by management on an annual basis and the outcomes are reviewed by the HRC andBoard 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 foreign-owned
financial services companies where relevant. The HRC last reviewed the ANZ Remuneration Policy in
February 2016 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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September 2016

Remuneration at ANZ
ANZ’s short term incentive 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.
The Board has on-going and absolute discretion to adjust unvested performance-based variable
remuneration downwards, or to zero at any time.
Adjustments may occur to assist in protecting the financial soundness of ANZ or if the Board
subsequently considers that, having regard to information which has come to light after the grant ofdeferred remuneration, the deferred remuneration was not justified.
The Board also has on-going and absolute discretion to withhold vesting until the Board has considered
any information that may impact the vesting.
For UK Code Staff, 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.
ANZ may determine that, having considered all relevant factors including the proximity of the employee
to the failure of risk management and the level of responsibility, it is reasonable to recover some or all of
the vested variable remuneration, within a seven year period from the date of the award. The employee
will be required to repay the amount determined by ANZ.
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 incentive2 opportunity and a long term
incentive3 opportunity, or a blended short and long term incentive opportunity.
For UK Code Staff, the ratios between fixed and variable remuneration do not exceed 1:1.
ANZ Employee Reward Scheme (ANZERS) and Total Incentive Performance Plan (TIPP)ANZERS and TIPP are designed to align performance to ANZ’s strategic objectives and annual operating
plan, fairly reward employees and encourage outperformance without encouraging undue risk taking.
ANZ operates two main incentive plans that cover the majority of employees:

ANZ Employee Reward Scheme (ANZERS) – is the standard discretionary incentive plan
operating across ANZ.

Total Incentives Performance Plan (TIPP) – is the discretionary incentive plan operating forspecific Institutional Product and Relationship employees in the Institutional division globally.
To determine and approve the annual short term incentive pools, the Board assesses performanceagainst a balanced scorecard of measures.
For 2016, the key performance measures under each of the balanced scorecard categories used to assess
performance for ANZERS are provided below. ANZ has used a balanced scorecard approach for a numberof years.
High Performing
 Revenue Economic profit
 Return on equity (ROE) Cash earnings per share
(EPS)

2
3

Most Respected Workforce diversity
 Employee engagement
 Senior leaders as rolemodels of our values

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

4

Well Managed
 Maintainstrongcreditrating Core funding ratio (CFR) Cost to income ratio Number of repeat adverse
internal audit ratings

ANZ Basel III Pillar 3 disclosure
Best Connected Growth in products per
customer Growth in cross-borderrevenue

September 2016

Customer Driven
 Customer
satisfaction(based on external survey
outcomes)

Performance measures within each of the division’s balanced scorecards are strategically aligned to theperformance measures within the ANZ balanced scorecard.
In determining the incentive pool for TIPP, the Board takes into consideration performance against abalanced scorecard of measures. The TIPP balanced scorecard considers a range of Financial, Customer,
Risk, Process and People measures.
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 2016, 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 rights4

100% of long term
incentive

34% of variable
remuneration5

Three years

Incentives are delivered in cash up to the mandatory deferral threshold. The HRC regularly reviews thethresholds at which mandatory deferral is applied, the quantum of variable remuneration which is subject
to deferral and the time period over which deferral occurs.
In 2015 and 2016, for Senior Executives and the participants in TIPP, short term and long term
incentives are combined. Incentive payments are delivered in cash up to AUD 80,000. Mandatory deferralapplies to 60% of payments exceeding AUD 80,0006 and this is deferred evenly over three years. For
Senior Executives, the amount deferred for three years will be delivered as a blend of performancerights7 and ANZ deferred equity (shares or share rights) subject to time and Total Shareholder Return(TSR) hurdles. If the hurdles are not met the awards lapse. The equity remains at risk and can be
adjusted downwards any time prior to the vesting date.

4

A face value methodology is used to determine the number of performance rights allocated to the CEO and ExCo. 2016
performance rights granted in 2017 are divided into two tranches: Tranche 1 (75%) ANZ TSR relative to a selectfinancial services comparator group and Tranche 2 (25%) ANZ TSR against ANZ Compound Annual Growth Rate (CAGR)
TSR target set by the Board. 2015 performance rights granted in 2016 were divided into three equal tranches: Tranche
1 ANZ TSR relative to a select financial services comparator group, Tranche 2 ANZ TSR relative to a comparator group
comprising companies making up the S&P/ASX50 index as at 18 November 2015 and Tranche 3 ANZ TSR against ANZCAGR TSR target set by the Board.
5
Deferred share rights for the CRO, instead of performance rights, to ensure greater impartiality and independence of
this role.
6
Or the local equivalent for overseas individuals. Mandatory deferral is subject to a minimum deferral amount of AUD
18,000 (or the local equivalent).
72016 performance rights granted in 2017 are delivered as one tranche subject to ANZ TSR relative to a select financial
services comparator group. 2015 performance rights granted in 2016 were delivered as two equal tranches: Tranche 1
ANZ TSR relative to a select financial services comparator group and Tranche 2 ANZ TSR relative to a comparator group
comprising companies making up the S&P/ASX50 index as at 18 November 2015.

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ANZ Basel III Pillar 3 disclosure

September 2016

In 2015 and 2016, for participants in ANZERS8 deferral applies to 50% of short term incentive payments
exceeding AUD 100,0009. Half the deferred equity is deferred for one year and half is deferred for two
years; the deferred equity remains at risk, and can be adjusted downwards at the discretion of the Board
until the vesting date.
UK Code Staff who are subject to the Code requirements and do not meet the ‘de minimis’ rule10 are
eligible to participate in ANZ’s incentive plans where applicable for their role, and payments will be madein accordance with the Code requirements as below:
1.

2.

If total variable remuneration is equal to or greater than GBP 500,000 then:a. 60% will be deferred over three years and vest on a pro-rata basis at the end of eachyear. Payments will be made 50% in cash and 50% in equity. The equity will be subject
to a retention period of 6 months following each vesting date; andb. the remaining 40% will be paid 50% in equity and 50% in cash. The equity will be
subject to a retention period of 6 months from the date of the award.
If total variable remuneration is less than GBP 500,000 then:a. 40% will be deferred over three years and vest on a pro-rata basis at the end of eachyear. Payments will be made 50% in cash and 50% in equity. The equity will be subject
to a retention period of 6 months following each vesting date; andb. the remaining 60%, will be paid 50% in equity and 50% in cash. The equity will be
subject to a retention period of 6 months from the date of the award.

The equity will remain subject to clawback during the retention period.
For UK Code Staff who are Senior Executives, the amount deferred for three years will be delivered as
50% hurdled performance rights and 50% deferred equity.
Long term incentives (LTI)
The long term incentive plan is delivered in equity, which provides alignment of a significant portion of anindividual’s remuneration to sustained growth in shareholder value over the longer term.
To further align an individual’s remuneration with ANZ’s actual performance outcomes, ANZ determines
LTI grants after the end of the performance year to which the grant relates (i.e. grants made during
2016 related to performance during the bank financial year 2015).
All long term incentive equity is deferred for three years and remains at risk, and can be adjusted
downwards, until vesting.
Equity granted to individuals in roles below the level of Senior Executive is delivered as ANZ deferred
equity (shares or share rights) subject to a time based hurdle only.
Current and Future Risks
ANZ has an Enterprise-wide risk management framework which takes into account a range of risks
managed within ANZ, both at the Enterprise level and individual business level.
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 orregulatory drivers) to ensure business objectives and performance are measured and monitored on arisk-adjusted basis and within appetite.
To ensure consistent monitoring year on year, the Board considers performance against a balanced
scorecard of measures to determine the incentive pools. This helps to ensure that the incentive pools areshaped by risk considerations. The 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 schemes are required to adhere to a set of policy
principles and governance standards which require the approval of the Finance, Risk, and HR functions.

8
And for 2015 for the CEO and ExCo, but excluding Senior Executives whose deferral arrangements are described in theprior paragraph.
9
Or the local equivalent for overseas individuals. Mandatory deferral is subject to a minimum deferral amount of AUD
25,000 (or the local equivalent).
10

Certain requirements of the UK’s PRA Remuneration Code relating to the structure of an individual’s remuneration do
not apply to a member of UK Code Staff who meets the ‘de minimis’ rule. This is where variable is less than 33% of total
remuneration and total remuneration is less than GBP 500,000.

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September 2016

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 21 (h) and 21 (j)): Remuneration - fixed, variable and other
remuneration (AUD)
Table 1 provides a view of how remuneration is paid or communicated to individuals. Consistent with theRemuneration Report Awarded Remuneration Disclosure table approach:

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

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 STI for the financial year and also the accounting expense of prior year STI and LTI share-based
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, except for one
role which is also classified as UK Code Staff for whom part of deferred remuneration is received asdeferred cash. Deferred cash is not disclosed below for this role to ensure confidentiality.
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 who received a relocation benefit
upon termination. The termination payment has not been disclosed below for this role to ensure
confidentiality.
Financial Year 2016
Senior Management
Number of people
Fixed remuneration (cash – non-deferred) AUD ’000

Material Risk Takers

33

11

22,8394,855

Variable remuneration
Number of people

25

9Cash (non-deferred) AUD ’000

9,016

4,204

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

16,396

5,724

Financial Year 2015
Senior Management
Number of people
Fixed remuneration (cash – non-deferred) AUD ’000

Material Risk Takers

23

7

21,053

8,221

Variable remuneration
Number of people

22

7Cash (non-deferred) AUD ’000

14,476

6,509

Shares and share-linked instruments (deferred)10 AUD ’000

21,342

9,143

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ANZ Basel III Pillar 3 disclosure

September 2016

Table 2 (APS 330, Table 21 (i) and 21 (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 2016 (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 lapse, 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.
All Senior Manager and Material Risk Taker deferred remuneration is deferred into equity, except for one
role which is also classified as UK Code Staff for whom part of deferred remuneration is received asdeferred cash. Deferred cash is not disclosed below for this role to ensure confidentiality.
Financial Year 2016
Senior Management

Material Risk Takers

19,841

5,315

99,49922,703

Total reductions due to ex post explicit adjustments $’000(33,848)(1,027)

Total reductions due to ex post implicit adjustments $’000(4,898)(1,498)Deferred remuneration paid out
Vested shares and share-linked instruments $’000
Outstanding deferred remuneration
Unvested shares and share-linked instruments $’000
Deferred remuneration reductions

Financial Year 2015
Senior Management

Material Risk Takers

20,15913,362

89,64022,890

Deferred remuneration paid out
Vested shares and share-linked instruments $’000
Outstanding deferred remuneration
Unvested shares and share-linked instruments $’000
Deferred remuneration reductions
Total reductions due to ex post explicit adjustments $’000(23,194)-

Total reductions due to ex post implicit adjustments $’000(4,101)(2,702)

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 have been
paid/granted/awarded in the financial years 2016 and 2015 to Senior Management and Key Personnel for
the ANZ HK branch.

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ANZ Basel III Pillar 3 disclosure

September 2016
Financial Year 2016
HK Senior Management
and Key Personnel

Number of people

13

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

25,146

Variable remuneration
Number of people

10

Cash (non-deferred) HKD ’000

7,173

Cash (deferred) HKD ’000-

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

4,681

Total variable remuneration HKD ’000

11,854

Total Remuneration HKD ’000

37,000Financial Year 2015
HK Senior Management
and Key Personnel

Number of people

12

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

29,335

Variable remuneration
Number of people

10

Cash (non-deferred) HKD ’000

10,343

Cash (deferred) HKD ’000-

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

7,940

Total variable remuneration HKD ’000

18,283

Total Remuneration HKD ’000

47,618

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 2016 (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 lapse, due to performance conditions not being met and/or due tocessation of employment.
Financial Year 2016
HK Senior Management
and Key Personnel
Deferred remuneration
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

15,2553,803
5,604

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

(902)
(1,067)
15,255-ANZ Basel III Pillar 3 disclosure

September 2016
Financial Year 2015
HK Senior Management
and Key Personnel

Deferred remuneration
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

15,2793,809

Paid out/vested deferred remuneration HKD ’000

7,516

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(1,640)15,279-Quantitative Disclosures for ANZBEL UK Code Staff
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 Code Staff 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 2016
ANZBEL Senior
Management and Risk
TakersNumber of people

6

Total remuneration GBP ’000

1,953

Table 6 (CRR Article 450 1(h(i), h(ii), h(iv), h(v) and h(vi)): Remuneration - fixed, variable
and other 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 Code Staff who are Senior Management.
Financial Year 2016
ANZBEL Senior
Management and Risk
TakersNumber of people

6

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

1,246

Variable remuneration
Number of people

3

Cash (non-deferred) GBP ’000

212

Cash (deferred) GBP ’000

109

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

212

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

174

Total variable remuneration GBP ’000

707

Total Remuneration GBP ’000

1,953

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September 2016

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 2016 (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 lapse, due to performance conditions not being met and/or due tocessation of employment.
Financial Year 2016
ANZBEL Senior
Management and Risk
TakersDeferred remuneration
Unvested outstanding deferred remuneration GBP ’000

768

Vested outstanding deferred remuneration GBP ’000-

Awarded deferred remuneration GBP ’000

553

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

480-

Table 8 (CRR Article 450 1(i): Remuneration by band (GBP)
Table 8 provides a breakdown of the number of ANZBEL UK Code Staff who are Senior Management andRisk 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 = 0.8652.
Financial Year 2016
Number of people
Deferred remuneration
865 – 1,299 GBP '000 (1m – 1.5m EUR)

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