The chairman has been sent packing and directors have had their fees slashed as AMP tries desperately to get back on the rails.

By Joe McDonough


Posted on April 30, 2018

Embattled wealth manager AMP has employed a raft of measures aimed at limiting the damage to the company in the wake of the damning banking royal commission revelations.

The long overdue probe into Australia’s big banks and financial institutions found AMP had lied to the Australian Securities and Investment Commission (ASIC) on at least 20 occasions in relation to charging “orphaned” clients fees for up to 90 days after they’d stopped receiving the expert assistance.

Just over a week ago, CEO Craig Meller fell on his sword, but there has been external pressure for the financial services giant to take further action.

That has now happened, with AMP chair Catherine Brenner resigning with immediate effect after a crisis meeting on Sunday.

Interim chief executive Mike Wilkins has now also been appointed as interim executive chair.

“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,” she said.

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.”

Coinciding with Brenner’s exit is the decision to cut directors’ fees by 25% for the remainder of the year.

Group general counsel and company secretary Brian Salter is also leaving, and AMP is warning there will be “employment and remuneration” consequences for others involved in the fees-for-no-service rort.