Three board members face being ousted at Thursday's annual general meeting, and Murray has implored investors to not let emotion dictate their decision-making.
Incoming chair of embattled wealth manager AMP, David Murray, has asked disgruntled shareholders not to make decisions in anger.
Ahead of Thursday’s AGM, there has been a push from CGI Glass Lewis and the Australian Shareholders Association for investors to vote against the re-election of AMP directors Holly Kramer, Vanessa Wallace and Andrew Harmos.
And while the former Commonwealth Bank CEO agrees heads had to roll in response to the fees-for-no-service revelations at the banking royal commission, he said the fate of the aforementioned trio should be given more consideration.
“The institutions are angry with what has happened, understandably. I think if they’re really angry and they want to vent that anger they could fire three people,” Murray said.
“Their only other alternative is to have confidence, leave it to us to sort it out in some more orderly manner because all of the board is determined that change has to happen.
“Serious investors have to consider whether anger is in itself a good enough frame of mind to make decisions. They have to decide whether they want anger to prevail or they’re confident that I can make the appropriate changes over time.”
[Investors] have to decide whether they want anger to prevail or they’re confident that I can make the appropriate changes over time.
Murray said rebuilding the public’s trust in AMP will go a long way to improving the reputation of Australia’s financial sector as a whole.
“It will be hard to rebuild but the issue for me in taking on this role is that all of the major pillars of the financial sector have to make improvements if the Australian community is going to have confidence in the financial sector,” he continued.
“It will take a long time because a breach of trust in the financial services system is a serious issue.”
There is more pain to come for AMP, with up to three class actions still hanging over it, and potential criminal action over its manipulation of a supposedly independent report from lawyers Clayton Utz.