More heads roll at AMP

[ROYAL COMMISSION] There have been more top level resignations at AMP in the wake of damning revelations at the Royal Commission in Australia.

Monday, April 30th 2018, 10:12AM

AMP's chairman Catherine Brenner has resigned and will step down from the Board. Mike Wilkins has been appointed as Executive Chairman, effective immediately.

Wilkins will lead the company for an interim period while the process for selecting a Chairman, and appointment of an additional new non-executive director, is conducted. "This will further strengthen governance and ensure stability while a measured process of board renewal is undertaken," the company said in a statement.

Wilkins will also lead the selection process for a new Chief Executive to replace Craig Meller who resigned just over a week ago .

AMP says that Group General Counsel and Company Secretary Brian Salter will leave the company. His outstanding deferred remuneration will be forfeited as a result of the board exercising its discretion.

The board has received advice from Philip Crutchfield QC, Tamieka Spencer Bruce of Counsel, and Tim Bednall of King & Wood Mallesons in relation to certain issues raised in the Royal Commission concerning the preparation of the Clayton Utz report on AMP’s fee for no service issue. The advice follows the establishment of the board committee chaired by Wilkins to examine the issues relating to AMP’s advice business that have been raised in the Royal Commission.

"Having considered and assessed the matters, the board is satisfied that the former Chairman Catherine Brenner, former Chief Executive Craig Meller and the other directors did not act inappropriately in relation to the preparation of the Clayton Utz report," AMP says.

"The board, including the former Chairman, were unaware of and disappointed about the number of drafts and the extent of the Group General Counsel’s interaction with Clayton Utz during the preparation of the report."

The board commissioned and received the report. It was not a matter for the board’s approval.

The Board announces the following further actions:

Recognising collective governance accountability for the issues raised in the Royal Commission and for their impact on the reputation of AMP, the board is reducing fees for all AMP Limited Board Directors by 25% for the remainder of the 2018 calendar year.
The employment and remuneration consequences for the individuals within the business responsible for the fee for no service issue will be determined on finalisation of an ongoing external employment review, which is expected to complete shortly.

Catherine Brenner said: “I am honoured to have been Chairman of AMP. I am deeply disappointed by the issues at hand and am particularly concerned for the impact they have had on our customers, employees, advisers and shareholders.

“As Chairman, I am accountable for governance. I have always sought to act in the best interests of the company and have been in discussions with the board about the most appropriate course of action, including my resignation. The board has now accepted my resignation as Chairman as a step towards restoring the trust and confidence in AMP.”

Mike Wilkins, Executive Chairman, AMP Limited said: “The Board acknowledges Catherine’s leadership and thanks her for her professionalism, integrity and dedication to the company over the past eight years. We will now begin a process of board renewal, including fast-tracking selection of a Chairman, and a new director. This process will help ensure stability and further strengthen governance.

“AMP respects the Royal Commission process. I can assure you that the evidence and submissions presented by Counsel Assisting are being treated extremely seriously by the board. Appropriate steps are being taken to address the issues raised, and remediating our customers is being given utmost priority.”

AMP will be making a formal submission to the Royal Commission by Friday 4 May in response to the matters raised in closing submissions by Counsel Assisting the Royal Commission.

Tags: AMP