ANZ Bank and National Bank hold their annual meetings this week and should have an easier ride than Westpac did on Friday.
ANZ’s meeting is on Wednesday, NAB’s on Friday.
Except for decisions to drop or defer dividends earlier in the year, both banks have recovered their reputations better than Westpac.
ANZ shares are up 30% in the past three months, NAB shares, 36% but Westpac shares are only up 18%. That’s still ahead of the 13.3% rise in the ASX 200 in the same period.
Both the NAB and ANZ have outperformed the CBA, the sector leader in the past three months. CBA shares were up 25% to Friday.
ANZ and NAB boards will take heart from the way Westpac was able to subdue its shareholders at Friday’s meeting with a promise on dividends.
Westpac’s newish management and board survived Friday’s annual meeting in good shape as investors vented their collective spleens on executive pay, governance and the future of dividends.
Westpac pledged at the meeting that shareholders will see a return to normal dividend payments in 2021 following a tumultuous year that has swiped the bank’s profits by 66%.
Westpac chairman John McFarlane said: “Going forward, I’m hopeful we will return to a more consistent dividend each half.”
Instead of another strike on the bank’s remuneration report from upset shareholders, just under 95 percent of Westpac’s shareholders approved the bank’s remuneration report at the meeting on Friday.
That avoided a third consecutive strike against the lender’s executive pay report. Westpac has talked extensively to major shareholders and other groups, and stepped up those contacts after the $1.3 billion money-laundering fine and the revamping of the board and senior executive team in late 2019 and earlier this year.
Mr. McFarlane told the meeting there had been accountability for Westpac’s failings, including suspending the executive team’s short-term bonuses for this year, but later added he would like to permanently change the bank’s approach to remuneration.
“I have a personal view on this in that I’m not in favour of short-term incentives, I would prefer remuneration to be much longer-term for the more senior members of the bank including the chief executive,” Mr McFarlane said.
“We don’t have that position today, but I would like that to be a position going forward.”
Mr McFarlane joined Westpac as chairman-elect in February after Lindsay Maxsted’s retirement was forcibly brought forward.
He told shareholders there was no concrete plan for the reforms, but noted change was afoot. “If it can be resolved satisfactorily after discussion with shareholders, in general, we may amend our approach.”
All the directors put forward for re-election were waived through with overwhelming support, with the exception of Peter Nash who saw a protest vote of 12.5% against his election.
Compared to the previous two meetings, Friday’s outing was peaceful.
