ANZ chief may get over $3 million top up
(14 November 2011 – Australia) ANZ Bank is seeking its shareholders’ approval to give chief executive Mike Smith a top up of up to a further A$3.15 million in performance-related shares.
The new arrangement would allow Smith to acquire stock at nil price, and the deal would start from next month, if investors give the go-ahead at the next annual meeting.
Smith would be able to acquire as much as A$3.15 million of stock after a three-year period ending in December 2014, if the targeted returns on share price growth, dividends and distributions are achieved.
ANZ's directors, who have recommended the proposal to shareholders, say the additional incentive is required to ''motivate'' Smith as chief executive while it would also more closely link his interests with those of shareholders.
The plan suggests that Mr Smith, who joined ANZ from HSBC in 2007, is likely to extend his term at the bank to see through its expansion into Asia.
Smith's remuneration for 2011 - which includes his basic pay, short-term bonuses and long-term shares and restricted benefits - fell by more than A$800,000 to just over A$10 million.
Of his A$10 million, Smith received A$3.15 million in fixed pay and a cash bonus of $1.75 million which with additional benefits of a$105,000 took his total take-home salary to A$5 million.
The other A$5 million was made up in shares and rights to stock that he may receive in full depending on the bank's future financial performance.
The annual report showed Smith received A$750,000 less in cash bonuses on the previous year, which explained a 10 percent drop in his overall take-home pay.
Smith would be able to acquire as much as A$3.15 million of stock after a three-year period ending in December 2014, if the targeted returns on share price growth, dividends and distributions are achieved.
ANZ's directors, who have recommended the proposal to shareholders, say the additional incentive is required to ''motivate'' Smith as chief executive while it would also more closely link his interests with those of shareholders.
The plan suggests that Mr Smith, who joined ANZ from HSBC in 2007, is likely to extend his term at the bank to see through its expansion into Asia.
Smith's remuneration for 2011 - which includes his basic pay, short-term bonuses and long-term shares and restricted benefits - fell by more than A$800,000 to just over A$10 million.
Of his A$10 million, Smith received A$3.15 million in fixed pay and a cash bonus of $1.75 million which with additional benefits of a$105,000 took his total take-home salary to A$5 million.
The other A$5 million was made up in shares and rights to stock that he may receive in full depending on the bank's future financial performance.
The annual report showed Smith received A$750,000 less in cash bonuses on the previous year, which explained a 10 percent drop in his overall take-home pay.
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