Former ANZ CEO Shayne Elliott has been equally as bold, having just kicked off legal action of his own against the bank. He claims they’ve defaulted on their contract. Elliott, who led ANZ from January 2016 until May 2025, contends that he believed the terms of his contract would be honored. This great legal action comes on the heels of serious controversies that dogged his tenure. Most glaringly, a bungled bond sale in 2023 allegedly lost the federal government $26 million and defaulted on close to 65,000 retail customers.
Elliott has taken some of the accountability for the disaster that occurred on his watch. What he’s looking for is a formal pronouncement from the court that ANZ breached his contract. This case is further confounded by a long history of excessive regulatory scare tactics. During Elliott’s time as CEO, the Australian Securities and Investments Commission (ASIC) forced ANZ to defend 11 civil actions.
Bond Sale Controversy
The selling of the bond in 2023 and the ensuing controversy are the center piece of Elliott’s legal claims. Under his watch, ANZ well and truly dropped the ball on this sale – with ripple effects felt by the government as well as ANZ’s customers. Yet the repercussions from this debacle soon shred any perceived operational efficacy or robustness of the bank’s risk management framework.
ANZ’s current CEO Nuno Matos admitted to the seriousness of these failings.
“As CEO, allow me to be direct — the bank fell short of what is expected of us and, for that, I offer an unreserved apology.” – Nuno Matos
In September, ANZ agreed to pay a substantial fine of $240 million to ASIC for its role in what was described as essentially ripping off the government and its customers. This fine reflects ongoing concerns about the bank’s conduct and accountability during Elliott’s leadership.
Regulatory Challenges
Elliott’s four years at ANZ was also punctuated by five separate regulatory enforcement actions. ASIC has already instituted 11 civil actions against the bank, exposing a shocking pattern of abuse. Together, these actions bring into question the very governance, oversight and compliance culture of the bank. ANZ has been under relentless pressure to change its ways and regain trust from its clients, shareholders, and customers.
Paul O’Sullivan, chairman of ANZ, defended the company’s approach to remuneration and accountability.
“The board has been considered and very deliberate in its assessment of remuneration outcomes. We are confident in our position and we will defend this matter vigorously.” – Paul O’Sullivan
ASIC Chair Joe Longo commented on the continued hard luck of ANZ.
“Time and time again, ANZ has fallen short.” – Joe Longo
Future Implications
Entering the legal fray, Elliott and ANZ are under enormous stakeholder and reputational pressure as the public battle progresses in the courtroom. The outcome of this case may not only affect Elliott’s future but could have broader implications for ANZ’s reputation and operational practices going forward.
