For AMP’s sake, Boe Pahari must put his case publicly

Boe Pahari, the new head of AMP Capital. Picture: Britta Campion

Boe Pahari is fast becoming a serious business risk for AMP and the sooner he gets out publicly to put his case the better it will be for everyone.

This of course assumes that what is said by the new head of AMP Capital - appointed despite a workplace sexual harassment complaint in 2017 - is of value.

The company pleads for patience.

Investment consulting firm JANA was in the news on Friday, warning AMP it is being placed “on watch” pending further details about Pahari’s appointment.

Nice work by JANA in successfully covering its backside because by coming out saying it has placed a temporary watch on AMP, everyone knows what fine people they are.

Down the track the watch notice will be quietly removed and it‘ll be back to business as usual and no-one will know the difference.

JANA would then have done nothing in practice, but achieved some brand advertising.

That tactic is standard practice in the investment consultant world.

That said, it is not exactly beneficial for AMP to be the centre of attention in this light.

The company releases its results on August 13 and Pahari is scheduled to talk after the results so he can tell shareholders about his plans and to get to know them better.

The company has told shareholders it had a QC examine the complaints against Pahari, which it is claimed showed there were eight allegations by the same person on one night, of which five were dismissed and three were admitted by both parties.

None of which is meant to support Pahari - just the facts presented to shareholders.

The upshot being he was fined $500,000, or 25 per cent of his annual bonus, which was meant to be $2m but ended up being $1.5m.

Poor Pahari - but hopefully the rent will be covered with that stipend on top of his regular pay.

Chairman David Murray, the AMP board and CEO Francesco De Ferrari have their hands tied because having come out saying they looked at the allegations, reviewed them and still chose to appoint Pahari, they can hardly remove him now that he has become a public liability.

That would make them look the fools.

Some argue AMP has kept the fire burning by saying too much.

If Pahari is now talking to shareholders and consultants, as claimed, then it’s high time he took his show public, so at least the market can judge his professional capabilities.