The move was supported by the Australian Council of Superannuation Investors (ACSI), which represents Australia’s largest super funds and recommended its members vote against the remuneration report.

“The board has clearly listened to investor feedback. It is a positive step that the bank has responded to the vote and decided to forfeit the long-term award as a result,” Ed John, ACSI’s executive manager of stewardship said.

A vote of more than 25 per cent against a company’s remuneration report is known as a “first strike”, with a subsequent strike giving investors a chance to vote to spill the board and re-elect the company’s directors.

ANZ also faced a sizable protest vote against its climate change policies. A shareholder-submitted resolution to force the bank to ensure fossil fuel companies it lends to have a Paris Agreement-aligned transition plan received support from 27 per cent of investors.

The board did not support the resolution, though O’Sullivan noted the interest from many shareholders regarding the bank’s actions over climate change. However, the chairman did not indicate the bank would change its climate policies, despite numerous questions from AGM attendees.

“As Australia’s largest institutional bank, we believe in reacting to climate change now. We’ve got a number of very explicit policies, we publish the results, and we are directly accountable to you and to the community for the targets we’ve set,” O’Sullivan said.

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“If [our] customers are not demonstrating clear intent and evidence of wanting to move on [climate change], then we will preserve the right to not participate in future finance, to sell down on existing facilities, and indeed, ultimately, sever the relationship.”

O’Sullivan also faced criticism from multiple shareholders over its ties to Lockheed Martin, a major weapons manufacturer which is currently supplying weapons to Israel. The chairman stressed the bank had a “clear screening policy” that ensured money it lent to clients would not be used for weapons manufacturing. Pro-Palestine activists staged a peaceful protest outside the bank’s AGM on Thursday.

Elliott will be replaced as chief executive by the former HSBC executive Nuno Matos, viewed largely as a “clean slate” option. He will begin in the new role on July 3.

“I know shareholders may be concerned an international appointment of this nature may be a signal we are looking to change course, but I can assure you the board and the incoming CEO are aligned,” O’Sullivan said.

Hugh Dive, chief investment officer at ANZ shareholder Atlas said he was hopeful the new CEO would provide a fresh start for ANZ to overcome its current issues.

“He won’t have any legacy issues or any baggage, so he’ll come in with a mandate and look to make some changes,” Dive said. ANZ shares had fallen 1.77 per cent to $28.84 amid a broader market downturn on Thursday.

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