Bendigo and Adelaide Bank passes pay vote despite compliance lapses

Summarised from 2 outlets · Updated 20 Oct, 06:32 · Archive

Bendigo and Adelaide Bank's remuneration report passed its annual general meeting with 84.8 per cent support after the board cut executive bonuses over anti-money-laundering failures.

Bendigo and Adelaide Bank has dodged the embarrassment of a first strike on executive pay after slashing bonuses for senior leaders in response to lapses in its financial crime and risks systems. The remuneration report passed the annual general meeting on Tuesday with 84.8 per cent of shares in support, well clear of the 75 per cent supermajority required.

The bank reported itself to regulators after a Deloitte review found serious bank-wide shortcomings following suspicious activity at one branch that resulted in four arrests. Financial crime agency AUSTRAC launched an investigation in December into whether the bank complied with money laundering regulations. Banking regulator APRA required the bank to hold an additional $50 million in operational risk capital, and the bank expects its rectification plan will cost $70 million over three years.

Chief executive Richard Fennell told the meeting he was ultimately accountable for the bank's deficiencies. "My number one priority is to fix these issues," he said. "There is a great deal of work ahead of us." In response, the board cut short-term bonuses for the core leadership team. Mr Fennell lost $397,000, and four other executives lost between $258,000 and $321,000. The chief executive's total pay fell to $1.75 million for 2025/26, from $2.4 million the previous year. Chairwoman Vicki Carter said none of the leadership received any raises in 2025/26, and additional awards are on hold for other key personnel pending the bank's own investigation.

How it is being reported

• Major regional bank leaders dodge first strike on payBendigo and Adelaide Bank has passed its executive pay packet after slashing bonuses for key leaders after lapses in its anti-money-laundering compliance.The West Australian · 20 Oct, 06:22
• Major regional bank leaders dodge first strike on payBendigo and Adelaide Bank has passed its executive pay packet after slashing bonuses for key leaders after lapses in its anti-money-laundering compliance.Perth Now · 20 Oct, 06:22

In this story: Bendigo and Adelaide Bank · Richard Fennell · Vicki Carter · AUSTRAC · APRA · Deloitte

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