AMP (ASX:AMP) marginally escapes spill vote

Company News

by Michael Luu

170-year-old wealth manager AMP (ASX:AMP) has successfully prevented a spill vote by only a narrow margin, as the new renumeration report received an approval rate of 75.79 per cent.

Speculation of a second consecutive strike was looming large, as multiple reports by major news outlets anticipated a 25-per cent-or-more opposition to the salary proposal.

Market analysts had previously pinpointed the recent sexual-harassment scandal, management woes, depleting shareholder value and a record low share price as the catalysts for another strike following last year’s overwhelming objection of 67 per cent to the pay packet.

Only 0.8 per cent was standing in the way of an election to reshuffle directors, as a second straight strike would have activated a vote on a spill resolution.

AMP mustered just enough shareholder support for the renumeration budget from three quarters of investors, following a series of questions around the future direction of AMP and board competency.

AMP Chairwoman Debra Hazelton addressed shareholders, “We are committed to working very hard to address your frustrations towards culture and performance. We will continue to rebuild your trust”.

AMP reiterated that the company is undergoing a strategic restructuring process, following the departures of former CEO Francesco De Ferrari. The group’s management is poised to receive a boost in female power, as ANZ’s Deputy CEO Alexis George will take the helm as the new chief executive.

Shares in AMP (ASX:AMP) are tracking 2.2 per cent lower at $1.11