ASA tells shareholders to vote against re-election of ANZ chair Paul O'Sullivan
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The news: ANZ chair Paul O’Sullivan shouldn’t be re-elected at the bank’s upcoming AGM, the Australian Shareholders’ Association (ASA) said its recommendation.
The context: The ASA criticised O’Sullivan for “serious” events that occurred under his leadership, citing several incidences that resulted in regulatory penalties and extra capital requirements for the bank.
“We believe the regulatory failings during his tenure and the need to establish new leadership as a priority are sufficient for us to vote undirected proxies against the re-election of Mr O’Sullivan,” the ASA’s voting guidance said.
ASA’s guidance comes after proxy adviser Glass Lewis and ISS recommended shareholders vote against ANZ’s executive pay report earlier this week.
The bank stripped former CEO Shayne Elliott of $13.5 million worth of bonuses due as part of his compensation package, while other former execs endured cuts worth around $32 million.
Current ANZ CEO Nuno Matos has apologised for the bank’s previous shortcomings and plans to cut up to 3,500 staff as part of sweeping layoffs.
What they said: ASA wrote: “What is perhaps most disappointing is that after the pain and comprehensive review of the banking industry by way of the Royal Commission and its findings in 2019, which placed everyone involved in the sector on notice as to community expectations, lessons appear to still go unheeded.”
