Three non-executive directors of AMP – the only three women on its eight-member board – are stepping down, the embattled financial services giant has announced.
Two of the three directors – Vanessa Wallace and Holly Kramer – will step down before the annual general meeting on Thursday, while the longest-serving director, Patty Akopiantz, will serve until the end of this year, to facilitate a “measured process of board renewal”, according to a company statement.
The Australian Shareholders’ Association had said it would vote against the re-election of Wallace and Kramer following damaging revelations about AMP at the banking royal commission, but both will now step down before that vote is held.
Wallace has also resigned as chairman of AMP Capital Holdings.
In a statement, the AMP interim executive chairman, Mike Wilkins, said: “Our shareholders are demanding board accountability and need to know that meaningful change is under way.
“I’d like to thank Patty, Vanessa and Holly for their service to AMP. They are extremely capable directors who have all made valuable contributions and brought great diversity of thought and experience to the board.
“They have listened to and acted on the feedback from our investors.”
AMP has also confirmed that the resolution for the election of Andrew Harmos as a non-executive director remains in place and will be voted at the AGM. The Australian Shareholders’ Association has said it will oppose Harmos’s candidacy.
AMP has weathered a barrage of criticism following revelations before the royal commission into Australia’s financial system.
The company confessed to having charged its clients fees for no services, and to lying to the Australian Securities and Investments Commission. The illegitimate fees were the subject of a supposedly independent report prepared by law firm Clayton Utz, but that AMP helped write.
The chair of AMP Limited, Catherine Brenner, has resigned, along with the chief executive Craig Meller.
The former Commonwealth Bank chief executive David Murray will take over as chairman after the annual general meeting.
Wilkins said many of AMP’s customers, employees and shareholders had “voiced their concerns” about the company’s behaviour.
“Many Australians are disappointed in AMP, and I understand why. We have let our customers and ourselves down.”
He said many of the issues raised before the royal commission were already known to AMP and were under investigation.
“Over the past two years, we have been working hard to change processes and systems within our advice business. We have also implemented a comprehensive program to strengthen governance and controls.”
