AMP taps David Murray for chairman role as search for next CEO continues

David Murray has been appointed incoming AMP chairman and will join the company’s board on or before July 1.

David Murray. (Picture: Adam Yip)

David Murray has been appointed incoming AMP chairman and will join the company’s board after an upcoming annual general meeting which is to be held on or before July 1.

Current executive chairman Mike Wilkins will return to the position of acting chief executive officer on that date, AMP (AMP) said in a statement to the ASX this afternoon.

“We’re delighted to welcome a person of David Murray’s outstanding calibre to the chairman’s role,” Mr Wilkins said.

“His appointment brings strong and experienced leadership to the company, strengthening our governance and our commitment to change.”

Mr Murray was inaugural chairman of Australia’s Future Fund and is a former Commonwealth Bank chief executive officer.

He chaired the Abbott government’s Financial System Inquiry and has been a supporter of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Last year, Mr Murray said he believed the banking royal commission would reveal issues that had been beyond the scope of the Murray Inquiry.

Mr Murray replaces former chairman Catherine Brenner, who was forced to stand down on Monday in the wake of explosive revelations in the royal commission. Mr Murray’s appointment was tipped by The Australian’s Margin Call column on Thursday.

The commission heard allegations that AMP misled the Australian Securities and Investments Commission at least 20 times in the fee-for-no-service scandal and claims that AMP’s board had tampered with an independent report on an investigation into the scandal by top tier law firm Clayton Utz.

Last month, AMP’s head of financial advice, Jack Regan, said that the company had misled ASIC about the scandal at least 20 times, and admitted he felt “discomfort” about telling the regulator that Clayton Utz’s investigation into the scandal was independent, given the level of interchange between the company and the law firm over the contents of the report.

The revelations also forced the exit of former chief executive Craig Meller.

AMP is also facing four potential shareholder class actions after law firms Shine Lawyers, Slater and Gordon, Quinn Emanuel Urquhart & Sullivan and Phi Finney McDonald all announced they would investigate whether the company had misled investors and whether it had breached continuous disclosure obligations.

In a submission to the royal commission this morning, AMP denied the allegations its board acted improperly in relation to the preparation of the report, saying the extent of the interaction between AMP and Clayton Utz had been “overstated”.

Former AMP CEO Craig Meller and former chairman Catherine Brenner at last year’s AGM in Sydney. (John Feder/The Australian)

AMP said Mr Murray will lead the redevelopment of governance processes at the company, including a process of considered board renewal.

Mr Murray is also tasked, along with Mr Wilkins, in leading the search for a new chief executive for the company, at which point Mr Wilkins will return to his role as a non-executive director.

Mr Murray said he looks forward to working to restore the community’s trust and confidence in the company.

“AMP employs almost 6,000 people many of whom are Australians serving its customers across wealth management, superannuation, financial advice, life insurance, asset management and banking,” Mr Murray said.

“It is a significant financial institution and needs to play a role within the Australian financial system which supports the building of trust and confidence in that system in the community.

“I look forward to working with the Board and executive management to support AMP’s people in achieving that outcome.

“As part of this, I am committed to meaningful board renewal but recognise the process must be measured so as to maintain the stability of AMP in the immediate future.

“Restoring trust and confidence is not easy and does not happen overnight, but I am confident this can be achieved.”

In 2001, Mr Murray was awarded the Centenary Medal for service to Australian Society in banking and corporate governance.

He was made an Officer in the Order of Australia for his service to the finance sector and to the community in 2007.