November 5, 2018 / 4:47 AM / 9 months ago

UPDATE 1-Australia's ANZ cuts top officials' pay 20 pct amid inquiry panel scrutiny

(Adds details of peers, share movement; paragraphs 3-7)

Nov 5 (Reuters) - Top executives of Australia and New Zealand Banking Group face a reduction in their base fees for fiscal 2019, the bank said on Monday, after the findings of a damning financial sector inquiry invited intense scrutiny.

Fees will be cut 20 percent for non-executive directors and the chairman next year, it said in an annual report that reiterated expectations of a weaker retail banking environment in Australia.

In a similar move in September, National Australia Bank had cited legal and public backlash from the findings of the royal commission.

The year-long royal commission examining the financial sector uncovered widespread instances of wrongdoing by all Australia’s major banks, wiping billions from their market capital.

Last month, ANZ said second-half profit fell 13 percent because of compensation paid to wronged customers. At the time, it announced cuts of about A$124 mln ($89.09 mln) to staff variable pay, but left unchanged remuneration for Chief Executive Shayne Elliott in 2018.

The bank’s shares were up about 1.3 percent by 0415 GMT, outperforming the benchmark, which was down about 0.4 percent. ($1=1.3918 Australian dollars) (Reporting by Ambar Warrick in Bengaluru; Editing by Clarence Fernandez)

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