Mike Smith to leave ANZ; Shayne Elliott to succeed as CEO

ANZ has today announced Mike Smith will retire as Group CEO on 31 December 2015 and current CFO Shayne Elliott will succeed him as Group CEO. Promoting internal candidates has three advantages (a) they know the organisation (b) they already have a network of relationships within the organisation and with key external stakeholders (c) they are a less expensive alternative than an external hire because you don't need to buy out unvested share based remuneration at the previous employer. In terms of his overall remuneration package, fixed remuneration of $2.1 million is lower than Mike Smith's fixed remuneration in FY2015 of $3.4 million. Target STI opportunity of 100% of fixed rem is same as Smith's: maximum opportunity per FY2014 rem report is 200% of target. LTI grant 'value' of 100% of fixed remuneration is same as grant to Smith at 2014 AGM (given Smith's fixed rem had increased to $3.4 million for FY2015).