AMP Board Faces Tough Questioning From Shareholders At AGM
AMP Board faces heavy pressure from shareholders, as it issues grovelling apology for misconduct.
What you need to know
- AMP issues apology to shareholders following revelations at the banking royal commission into the conduct of the banking giant.
- Shareholders ripped into the Board over misconduct as well as the absence of incoming Chairman David Murray, as well as resigning directors Holly Kramer and Vanessa Wallace.
- Andrew Harmos elected to the Board of Directors
- Board dealt first strike on remuneration report
AMP's board faced angry questioning from shareholders at its annual general Meeting on Thursday, as fallout from the banking royal commission continues.
AMP issued an unreserved apology to its shareholders following Banking Royal Commission revelations it charged almost 15,000 customers for financial advice they never receive.
Interim Executive Chief Mike Wilson began Thursday's meeting with an apology.
"We are truly sorry. The issues highlighted in our advice business are unacceptable. We let you down. We've let our customers down," Wilson said.
HARMOS ELECTED TO BOARD AFTER MASS RESIGNATIONS
Wilson informed the meeting that 50 percent of the Board had either resigned, or put their hand up to step down by the end of the year.
Gender diversity was questioned, as there are no female directors left on the Board as it stands.
Andrew Harmos was elected as a new director to the Board during today’s meeting, despite a protest of 37.6 per cent against him from minor shareholders.
Shareholders Have Their Say
Minor shareholders slammed the board during question time, with the ongoing Banking Royal Commission at the centre of the debate, as well absence of Chairman Elect David Murray and resigning directors Holly Kramer and Vanessa Wallace.
Many shareholders accused those absent of "hiding", and expressed their disappointment they were not present to face questions about their actions and remuneration.
Chairman Elect David Murray will begin his tenure on or before 1 July.
Admissions of misconduct were also a major talking point, with one shareholder, Mr Gilbert, comparing compliance to pregnancy.
"You either were, or your weren't... could the Board please explain why they believe compliance is a matter of degree?" he asked.
Wilson repeatedly answered fiery questions with claims the turnover of Board members would reinvigorate the values the integrity of the company in the future.
"The AMP of the future will be different to the AMP of today," Wilson said.
AMP Strikes Out On Remuneration Report
The AMP Board did not receive the required 25% of votes from shareholders on a proposed remuneration package for company executive's pay during its Annual General Meeting on Thursday, resulting in a first strike against the proposal.
The largest ever vote against a top ASX 50 Board proposal was lodged today, with 61.5 per cent of shareholders voting against it.
A second strike on this policy in consecutive years would see the Board spilled and an election called.
Class Action Launched By Shareholders
The AGM comes as AMP today declared its intention to fight two class actions launched by minor shareholders following revelations made about AMP's conduct during the Banking Royal Commission.
AMP stated it would "vigorously" fight the class action proceedings.