AMP chairman David Murray has resigned and top executive Boe Pahari has stood down as AMP Capital chief executive after investors demanded accountability over the handling of the sexual harassment case at the troubled wealth giant.
AMP told the market on Monday morning Francesco De Ferrari would remain as chief executive and would replace Mr Pahari as AMP Capital chief executive on an interim basis. Mr Pahari will return to his previous role within AMP Capital's infrastructure equity business.
Non-executive director Debra Hazelton will replace Mr Murray as chair, effective immediately.
AMP chairman David Murray has resigned.Credit:Louie Douvis
Former Treasury secretary John Fraser voluntarily resigned as non-executive director, as a result of Mr Murray's decision to leave the company.
"These changes respond to feedback expressed by some major shareholders regarding the appointment of Mr Pahari as AMP Capital CEO on 1 July 2020," AMP said in a statement.
Mr Murray said AMP needed to continue its "transformation" under Mr De Ferarri with the support and confidence of investors, institutional clients, employees, partners and clients, "without distractions".
Boe Pahari will return to his previous role within AMP Capital’s infrastructure equity business.Credit:
"The board has made it clear that it has always treated the complaint against Mr Pahari seriously. My view remains that it was dealt with appropriately in 2017 and Mr Pahari was penalised accordingly. However, it is clear to me that, although there is considerable support for our strategy, some shareholders did not consider Mr Pahari’s promotion to AMP Capital CEO to be appropriate.
"Although the board’s decision on the appointment was unanimous, my decision to leave reflects my role and accountability as chairman of the board and the need to protect continuity of management, the strategy and, to the extent possible, the board," Mr Murray said.
New AMP chair Ms Hazelton acknowledged Mr Murray's leadership and thanked him for "professionalism, dedication and commitment" to AMP.
"Under my leadership, the board will focus on working with Francesco and his leadership team to deliver long term value for our shareholders and clients by executing the transformation strategy.
"I am determined to restore the trust and confidence of our clients, shareholders and employees," she said.
More to come
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