Sacked for misconduct, but the bank still had to answer for his bonuses

The dismissal stood. The clawback did not.

In Alexiou v Australia and New Zealand Banking Group Limited [2026] FCA 1373, the Federal Court dealt with a claim brought by ANZ's former Global Head of Balance Sheet Trading. It is a useful reminder that the reason for a dismissal and the right to withhold a bonus are two separate legal questions.

What happened

Mr Alexiou was suspended in late 2014, along with several other traders, while the bank bill swap rate was under regulatory investigation. During its own internal investigation the bank found lewd messages he had sent on work email and a work chat platform. It dismissed him in September 2015 for breaching its code of conduct.

At the same time the bank cancelled a $5 million bonus for the 2014 year and clawed back about $3.25 million in deferred shares from earlier years.

He sued in 2020, arguing that he was a whistleblower, that the bank had taken unlawful adverse action against him, and that withholding his bonuses was a breach of contract.

What the Court decided

• The whistleblower claim failed. The Court accepted it was possible he had raised concerns with a manager in 2011, but there was no record of it and the Court could not be satisfied that it happened. The burden of proving it was his.
• The adverse action claim failed.
• A toxic culture was not a defence. The Court found the workplace culture was one of "toxic masculinity" that came from senior management down. But the evidence did not show the bank had stopped enforcing its code of conduct, so the bank could still rely on his breaches.
• The clawback was a breach of contract. The bank's power to take back the deferred shares depended on its decision-makers first reaching a particular state of satisfaction under the contract. They never properly turned their minds to it, so the power to claw back never arose.

The amount payable for the breach is still to be calculated. The Court also indicated that, had the adverse action claim succeeded, it would have awarded $50,000 for distress and $300,000 for reputational damage, and it rejected the bank's argument that he had not done enough to find other work.

What this means for employees

• Being dismissed for misconduct does not automatically cost you a bonus or deferred shares. It depends on what the contract and the bonus plan actually say, and on whether your employer followed them.
• Where a plan gives the employer a discretion to cancel or claw back, the employer must genuinely exercise it. Skipping that step can be a breach of contract.
• If you raise a concern at work, put it in writing. A complaint that cannot be proved years later may not protect you.
• "Everyone else was doing it" will rarely excuse a breach of a code of conduct.

This article is general information only and does not constitute legal advice. Every matter is different — speak with one of our employment lawyers about your specific circumstances.

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