AMP chairman abruptly resigns due to appointment of controversial CEO

The chairman of embattled wealth group AMP has abruptly resigned due to the bungled CEO appointment at its wealth business.

The chairman of embattled financial group AMP has suddenly resigned following a shareholder revolt. Picture: Hollie Adams/The Australian

The chairman of embattled financial group AMP has suddenly resigned following a shareholder revolt over the bungled appointment of Boe Pahari as chief executive of its wealth business.

In an update provided to the Australian Stock Exchange on Monday, AMP chairman David Murray announced his resignation from the company’s board, effective immediately.

Mr Murray said he resigned over the board’s decision to appoint Mr Pahari to the top position at AMP Capital despite a known sexual misconduct allegation in 2017 that Mr Pahari was penalised for.

AMP chairman David Murray has resigned. Picture: AAP Image/Joel Carrett

Boe Pahari has also stepped down from the CEO role. Picture: Britta Campion

Mr Pahari has also stepped down from the role of AMP Capital CEO effective immediately and will be demoted to his previous role.

AMP chief executive Francesco De Ferrari will assume direct leadership of AMP Capital until a new CEO is appointed.

Debra Hazelton has been appointed as the new chairman of the financial group.

Mr Murray said the misconduct matter in relation to Mr Pahari was dealt with appropriately.

“It is clear to me that, although there is considerable support for our strategy, some shareholders did not consider Mr Pahari’s promotion to AMP Capital CEO to be appropriate,” he said.

“Although the board’s decision on the appointment was unanimous, my decision to leave reflects my role and accountability as chairman of the board and the need to protect continuity of management, the strategy and, to the extent possible, the board.”