AMP board survives AGM

Investors back wealth manager executives’ pay

AMP has been spared a second strike and potential board spill over executive pay after its shareholders voted in favour of the wealth manager’s remuneration report.

More than 89 per cent of shareholders at yesterday’s annual general meeting in Sydney supported the report, which was overhauled along with the AMP board after 61 per cent of votes last year were cast against executive pay.

The report, which scrapped short-term cash bonuses and cut directors’ fees, was approved by 89.41 per cent of shareholders. Just 10.49 per cent of votes went against it.

If more than 25 per cent of votes are cast against a remuneration report for two years in a row, a company must hold a vote on whether to spill the board. Shareholders also approved the appointment of David Murray, John Fraser, John O’Sullivan and Andrea Slattery to the AMP board.

Mr Fraser, Mr O’Sullivan and Ms Slattery were all voted in by an overwhelming majority of voters, while 87 per cent of shareholders approved the appointment of former Commonwealth Bank chief executive David Murray (pictured) to the board.

Mr Murray earlier admitted the wealth manager had “faltered from its purpose” but that the firm had taken on board the lessons of the financial services royal commission and last year’s overwhelming rejection by shareholders of its remuneration report.

AMP shares crashed and the firm slashed its dividend as it paid to fix its costly mistakes and misconduct, but Mr Murray said the overhauled leadership group was focused on improving accountability and improving governance.

“Last year, AMP was shown to have faltered from its purpose,” Mr Murray said yesterday. “The board and I are acutely aware of the loss our shareholders suffered, both in share price and dividends.”

AMP also announced the appointment of chief financial officer John Patrick Moorhead ahead of the AGM.

The current CFO and chief operating officer of AMP Capital will replace Gordon Lefevre from June 1, the company said.

“I’m delighted that JP will join our new leadership team ... as we change and reinvent AMP, he will bring the valuable international experience of leading finance,” chief executive Francesco De Ferrari said.

Mr Lefevre will retire after more than five years as group CFO, including a “challenging” 18 months in which the company was hauled over the coals at the royal commission.