AMP Limited chair resigns
AMP Limited chair David Murray has resigned from the board over the controversy surrounding the appointment of Boe Pahari.
Pahari has removed from the chief executive role and resumed his previous position as global head of infrastructure equity.
“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," said Murray.
"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."
Murray was appointed in 2018 after Catherine Brenner stepped down following controversial revelations at the Hayne Royal Commission.
AMP Capital chair and AMP Limited board member John Fraser has also resigned.
He previously spent more than 10 years as the CEO of Commonwealth Bank and was the inaugural chair of the Australian Future Fund from 2006 - 2012.
Debra Hazelton, who joined the board in June 2019, has been named the new AMP chair. "On behalf of the Board, I would like to acknowledge 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. We would like to thank both David and John for their professionalism, dedication and commitment to AMP.
"Under my leadership, the Board will focus on working with Francesco [De Ferrari] 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."