This morning, AMP Limited (ASX: AMP) shareholders were dealt another blow with the announcement of the departure of Chairperson Catherine Brenner.
AMP, one of Australia’s largest financial advisory groups, has been a key feature of the Royal Commission into the banking and financial services sectors.
“I am honoured to have been Chairman of AMP,” Ms Brenner 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.”
Last week, AMP’s CEO Craig Meller stepped down following allegations that the company charged fees for no advice (known as ‘fee for no service’) and misled the finance industry regulator, ASIC.
Read: “AMP CEO Steps Down Amid Dodgy Advice Scandal”
AMP General Counsel and Secretary, Brian Salter, will also leave. “His outstanding deferred remuneration will be forfeited as a result of the Board exercising its discretion,” AMP wrote in its ASX announcement.
Brenner Out, Wilkins Steps In
In her place, Director Mike Wilkins, formerly the CEO of Insurance Australia Group Ltd (ASX: IAG), will assume the position of interim Chairman.
Mr Wilkins is heading AMP’s efforts into a review of its practices and corporate governance.
The remaining AMP board members will take a 25% pay cut for the remainder of their 2018 financial year. In addition, the board will assess the employment and financial consequences for employees responsible for the ‘fee for no service’ once a review is completed.
“The Board acknowledges Catherine’s leadership and thanks her for her professionalism, integrity and dedication to the company over the past eight years,” Wilkens noted. “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.
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