ANZ has capped the pay increases for the bank’s 900 executives and managers in an attempt to rein in growing remuneration expenditure.


The salary cap will see ANZ executives and managers pay raises kept to a fixed rate of 1 per cent per annum. Chief Executive Officer Mike Smith released a company wide memo, saying that in most cases pay will remain fixed for the next year and increased will be reserved for high performing employees on the lower salary ranges.


"As I indicated at our recent trading update, we are taking action to position ANZ ahead of the curve by making decisions that demonstrate to our people, customers and shareholders that we are running our business in a responsible and sustainable way," Mr. Smith said in the memo.


"This includes monitoring and taking action on fixed costs, including executive salaries."