As has been widely reported this week, AMP has announced that David Murray has resigned as AMP Limited Chairman and has stepped down from the Board with Debra Hazelton appointed as the new Chairman of the company.
In addition to Murray’s departure, a statement from AMP advises that in addition, Boe Pahari, will step down from his recently-appointed role as AMP Capital CEO and will resume work at his previous level with a focus on AMP Capital’s infrastructure equity business.
The company says that AMP’s Chief Executive Francesco De Ferrari will assume direct leadership of the AMP Capital business on an interim basis while a search process is conducted for a new CEO of AMP Capital.
It says that in light of David Murray’s resignation, John Fraser has also decided to resign as a non-executive Director on the AMP Limited Board and as Chairman and non-executive Director on the AMP Capital Holdings Limited Board.
AMP says these changes respond to feedback expressed by some major shareholders regarding the appointment of Pahari as AMP Capital CEO on 1 July 2020.
Murray commented: “AMP needs to continue its transformation under Chief Executive Francesco De Ferrari with the support and confidence of its investors, institutional clients, employees, partners and clients, without distractions.”
He says the Board has made it clear that it has always treated the complaint against Pahari seriously. His view remains that it was dealt with appropriately in 2017 and 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.”
Murray says that although the Board’s decision on the appointment was unanimous, his decision to leave reflects his role and accountability as Chairman and the need to protect continuity of management, the strategy and, to the extent possible, the Board.
Debra Hazelton acknowledged David Murray’s leadership of the AMP Board over the past two years “… as the business has tackled critical and highly complex challenges in AMP’s transformation program”.
She thanked both board members for their professionalism, dedication and commitment to AMP.