Francesco De Ferrari to exit AMP, ANZ’s Alexis George named new CEO

Bank boss hails the rise of women to senior roles as Alexis George is named to take over from Francesco De Ferrari as CEO of embattled AMP.

ANZ’s Alexis George is AMP’s new CEO. Picture Kym Smith

ANZ’s deputy chief executive Alexis George will take over the top job at embattled AMP from departing Francesco De Ferrari, after being lured to the 172-year-old group with a potential sign-on payment of $4.1m in shares.

Mr De Ferrari’s departure follows a portfolio review at the wealth and asset management company, and widespread speculation last week that he was on his way out. AMP released two ASX statements last week declaring that Mr De Ferrari had not resigned, albeit the second release signalled a leadership review was underway.

Mr De Ferrari will continue to lead AMP until at least July 1 before Ms George starts in the third quarter, subject to regulatory approvals, AMP’s ASX statement said on Thursday. After that Mr De Ferrari would be available to AMP to assist with the handover to Ms George.

Ms George has extensive financial services experience having served as ANZ’s deputy CEO, as well as group executive wealth Australia. In the latter role she helped steer the sale of the life insurance and financial advice divisions in several tranches from 2017.

“Proud” ANZ CEO Shayne Elliott said it was a “good thing our most senior women are being selected for these high-profile and challenging roles” and getting the “opportunities they deserve”.

AMP said the new CEO’s contract included a salary, including superannuation, of $1.72m, per annum and the potential for a short-term bonus of 100 per cent to 200 per cent of that amount, depending on performance.

The sign-on award has a face value of $4.1m in AMP shares. It will vest in tranches over three years, if required conditions including total shareholder return targets and continued service are met, and they aim to replace “existing incentive arrangements foregone”.

AMP’s shares soared 4.7 per cent to $1.325 after investors cheered the CEO announcement.

“The exit of AMP Ltd’s (BBB-/Stable/--) CEO highlights the challenges the Australia-based financial services company has had executing its restructuring plans. However, the CEO's departure and the appointment of Alexis George as the new incoming CEO, announced today, could reinvigorate and transform the group's strategy,” S&P Global Ratings analyst Nico DeLange said.

“We see limited risk to our rating on AMP group because our rating already largely factors in the risks arising from challenges, such as: a degree of uncertainty that remains regarding strategic initiatives and outcomes for AMP Capital; and the departure of several senior executives and board members in various parts of the group in the past year.”

Sources said head-hunters from Korn Ferry conducted the CEO search on behalf of AMP’s board.

Ms George is expected to revisit AMP’s strategy and reform its culture, which has been tarred by a number of conduct scandals.

On Thursday Ms George said: “I’m leaving ANZ with very mixed emotions. While I’m excited about the challenge ahead, I’ll miss the people and the supportive and inclusive culture we’ve built together at ANZ.”

In an interview with The Deal alongside her daughter Ashlee in 2019, Ms George gave some insight into the way she approaches career progression.

At the time, she said if you want to make it to the top “you need to take those roles that make you feel sick in the stomach”.

Ms George said success in the workforce was less about being ambitious and more about taking risks.

“If that job you take on isn’t making you feel sick in the stomach, then it’s not the job you should be in,” she quipped.

Alexis George, pictured with herdaughter Ashlee Barnes, as part of the The Deal magazine's series on CEO women and their daughter. Photographer: Adam Yip

The handing over of the CEO baton comes as AMP pushes ahead with a sale of its majority stake in its private markets unit to US group Ares Management, although the suitor has also expressed interest in buying the entire division. It sits within the capital unit and houses AMP’s real estate and infrastructure investments and funds.

AMP said Mr De Ferrari will continue to work on the proposed private markets deal with Ares, as well as working in partnership with the board to “lead AMP’s key strategic initiatives”.

Mr De Ferrari has only been in the role a short time, after being appointed CEO of AMP in August 2018 and officially starting in December of that year. He succeeded Mike Wilkins who had been interim CEO since April 2018, when the Hayne royal commission brought forward the retirement of Craig Meller.

Mr De Ferrari’s tenure has been marred by scandals including the exit of AMP Australia boss Alex Wade and the demotion of then AMP Capital boss Boe Pahari last year, both for inappropriate conduct. He has had limited traction with a turnaround plan, given the executive turmoil and the disruptive impact of COVID-19.

On the changing of the guard at AMP, Mr De Ferrari said: “While there is no optimal time for transition, the board and I agreed that for AMP to deliver on the next phase of its ambitious transformation, at this juncture long-term certainty of leadership is critical for our business, our employees and our clients.

“Leading AMP, a business that is part of the fabric of Australia and New Zealand, is a privilege. I wish Alexis and AMP only the best and you can count on me to continue cheering for its success from the sidelines.”

Speculation had been swirling about Francesco De Ferrari’s looming departure. Picture: Britta Campion

AMP chairman Debra Hazelton said: “the board and Francesco agreed that it is an appropriate time to begin the transition to a new CEO to take AMP forward”.

“Francesco has led AMP through an extraordinary period, responding to unprecedented external challenges, all while successfully executing a complex transformation program. His strategy has materially reshaped the group, simplified AMP and sharpened the focus of each of our businesses on their strongest growth opportunities. He led our business through the disruption of COVID-19 and successfully delivered key programs including client remediation and the completion of the sale of AMP Life.”

Ms Hazelton said Ms George was a “great leader and strong fit for the future” of AMP.

“On any measure, she has outstanding industry experience in wealth management and banking, and is committed to continue the transformation of AMP’s business, and importantly, our organisation’s culture.”

Ms George has more than 25 years’ experience in the financial services industry, including seven years at ANZ. Prior to ANZ, she spent ten years with ING Group in a number of senior roles including CEO Czech Republic and Slovakia.

ANZ CEO Shayne Elliott said: “While we are incredibly disappointed to lose Alexis, I could not be more proud she has been asked to take on such an important role as the next CEO of AMP.

“Alexis has made an invaluable contribution over the last seven years and I know she will have a similar impact on her new company. Her leadership during the pandemic was exceptional and made a big difference to how we were able to support our staff and customers through an incredibly challenging period.

“It is also a good thing our most senior women are being selected for these high-profile and challenging roles. It shows we are providing our people with the opportunities they deserve and Alexis’s appointment as CEO of AMP is ultimately in the best interest of the Australian business community,” Mr Elliott said.

Alexis George appearing at a parliamentary committee hearing with ANZ CEO Shayne Elliott in 2017. Picture: .

Mr De Ferrari’s exit arrangements will be closely scrutinised by investors. They see his incentives continue to be available under his contract, including his short-term bonus for 2021.

AMP said in addition, the outgoing CEO would receive a payment of $300,000, less applicable tax, for the additional work he undertook in 2021 to support the AMP Capital business.

“He will not be eligible to receive any other incentive awards in respect of future years,” the AMP statement added.

Mr De Ferrari is also receiving a lump sum of $200,000 as a gross reimbursement of some of his relocation costs, and access to taxation and visa advice.