Tough times continue for AMP

Despite a $2.5 billion shortfall and losing 444 advisers, AMP's board has approved an 80% increase to chief executive Francesco De Ferrari's remuneration. It has also announced the resignation of its chief risk officer.

The country's largest wealth manager reported losses across the board in its FY19 results citing a challenging environment in Australian wealth management for the poor result.

FY19 underlying profit came in at $464 million, down from $680 million in the previous year.

The net loss attributable to shareholders was $2.5 billion, with the company saying this was largely due to impairments taking in the first half of the financial year to address legacy issues and "position AMP for the future".

AMP Capital and AMP Bank were the only two arms of the business that experienced growth, despite some of this offset the board decided not to declare a final dividend.

AMP chief executive Francesco De Ferrari said 2019 was a year of "fundamental reset" at AMP.

"We rebased our business, set out a new group strategy and strengthened our capital base to accelerate the execution of our strategy," De Ferrari said.

"Amid the reset, AMP Capital has an outstanding year, delivering on its long-term global growth plan.  Its reputation as a global leader in real assets investment was further enhanced with two of the largest infrastructure fundraisings in the world during 2019."

At the time of reporting the company's results, the board also announced an updated remuneration plan for De Ferrari, confirming an adjustment to his short-term inventive (STI).

"The board has approved an increase in the maximum STI opportunity to 200% of the chief executive's base salary.  This replaces the maximum STI opportunity of 120% of base salary, set when De Ferrari was appointed chief executive in August 2018," the announcement said.

"The change brings the chief executive's STI potential into line with the policy intended to apply for senior executives."

Meanwhile, the wealth manager also announced AMP Group chief risk officer Jenny Fagg has resigned.

Fagg joined AMP's leadership team in January 2018 ahead of the Royal Commission and will depart on April 3.

AMP said Fagg leaves with the group's best wishes, having strengthened the group's risk management.

AMP chief audit executive Phil Pakes will take over from Fagg, stepping down from his current role to work with Fagg during the transition. Pakes joined AMP in April 2019.

AMP's head of internal audit Nicola Rimmer-Hollyman has been promoted to the executive team, stepping into Pakes' role.

The group also announced changes to the board with Mike Wilkins stepping down and Michael Sammells being appointed as non-executive director.

Wilkins, who has served on the board since 2016 including as interim executive chair in 2018, is also stepping down form the groups risk, audit, nomination and remuneration committees effective 14 February 2020.

He will remain as a non-executive director on the board of AMP Life until the completion of the sale of the business to Resolution Life.

AMP chair David Murray said: "On behalf of the board, I would like to offer sincere thanks to Mike Wilkins.  He has taken the decision to step down from the AMP board to manage his increased responsibilities outside AMP, and we wish him well."

"He has served AMP with distinction throughout his time on the board, particularly when he stepped into an executive capacity as executive chair and chief executive at a deeply challenging time for the company in 2018."

Sammells will step into his new role effective  March 1, and will become a member of the risk, audit, and remuneration committees.

Sammells has previously served as chief financial officer for over 20 years across private and ASX listed companies.

Read more: Francesco De FerrariMike WilkinsJenny FaggMichael SammellsPhil PakesDavid MurrayNicola Rimmer-HollymanResolution LifeRoyal Commission
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