AMP Ltd chair David Murray has resigned and Boe Pahari has stepped down as AMP Capital CEO, after pressure from shareholders in response to sexual harassment allegations against Pahari.
Effective immediately, Murray has stepped down from the board and Pahari will resume work at his previous level with a focus on AMP Capital’s infrastructure equity business.
AMP CEO Francesco De Ferrari will assume direct leadership of the AMP Capital business while the company seeks a new CEO. AMP non-executive director and AMP Capital Holdings Ltd chair and non-executive director John Fraser has also decided to resign.
AMP said the changes responded to “feedback expressed by some major shareholders regarding Pahari’s appointment as AMP Capital CEO on 1 July 2020”, after sexual harassment allegations against him came to light.
Murray said his view remained the complaint against Pahari had been “dealt with appropriately in 2017” and Pahari had been penalised accordingly.
“However, it is clear to me that, although there is considerable support for our strategy, some shareholders did not consider … Pahari’s promotion to AMP Capital CEO to be appropriate,” he said.
Debra Hazelton, who joined the AMP board last year, will take over as chair. She is a member of the remuneration, audit, nomination and risk committees. She is also on the AMP Bank board and a member of its audit and risk committees. Previously, Hazelton was in June 2018 appointed to the AMP Capital Holdings board as a member of its audit and risk committee.
She said under her leadership, the AMP board would focus on working with De Ferrari and his leadership team to deliver long term value for shareholders and clients. “I am determined to restore the trust and confidence of our clients, shareholders and employees,” she said.