Focus Live: ANZ chairman Sir John Key on boss David Hisco’s departure after review of personal expenses
Former ANZ NZ boss David Hisco left behind approximately A$7.4 million in variable remuneration payments after departing the bank following an investigation into personal expenses.
Hisco left his A$3 million plus a year job in mid-June following allegations he "mis-characterised" certain personal expenses as business expenses, including wine storage and the use of chauffeur-driven cars.
When his employment ceased he was awarded no long term incentives or variable remuneration for 2019 and he immediately forfeited all unvested deferred remuneration, according to the bank's annual report.
"This provided a clear message both internally and externally of the importance of doing the right thing and that this is expected of all our people regardless of seniority," the report said.
Hisco, who had already been on leave due to ill health, still received A$1.497m in fixed pay and deferred payments in 2019, the report showed.
Antonia Watson, who took over as acting CEO of the New Zealand business, has had her fixed remuneration set at A$800,000 per annum (from June 17, 2019). However, her variable remuneration has been increased to 300 per cent of base salary.
The Hisco scandal worsened after it was revealed the bank had sold a luxury property to Hisco's wife for what appeared to be a below value price.
Former ANZ Bank boss David Hisco at his holiday home in Omaha Beach. Photo / Dean Purcell
The sale of 269 St Heliers Bay Rd property, owned by ANZ subsidiary Arawata Assets Limited, to Deborah Veronica Walsh raised fresh questions about the nature of his employment deal and sudden departure.
A Terranet Summary Report shows that the luxury St Heliers mansion was purchased by Arawata Assets, in 2011 for $7.5 million.
Despite a booming property market over the next six years, the property was on-sold to Walsh in July 2017 for just $6.9m.
An investigation by the Financial Markets Authority then found the property sale should have been disclosed as a related party transaction in the bank's 2017 financial statements.
But ANZ disagreed with the FMA's finding.
In a statement, it maintained the "sale price of $6.9m was determined following a process to ascertain the value of the property with reference to external, independent valuations".
It considers the transaction not to be material information on the basis that this disclosure could not influence the economic decisions of the users of financial statements.
Sir John Key's pay packet was also revealed. Key is chairman of the New Zealand board and sits on the ANZ Group board in Australia. As a group director, he received A$249,780 for the 2019 financial year, up from A$148,546 in 2018.
Key also received a total of NZ$302,925 as a non-executive director for ANZ Bank New Zealand until December 31, 2017 and $382,950 as chairman of ANZ Bank NZ from January 1, 2018.
Watson told the Herald last week that the release of the Reserve Bank's section 95 review into its attestation process would be key to moving on from its challenging year.
