Super funds say AMP executive Boe Pahari’s position ‘untenable’

Superannuation funds say a top AMP executive’s position is untenable after a sexual harassment complaint lodged against him was made public.

The appointment of AMP Capital’s new boss Boe Pahari has stoked controversy. Picture: Britta Campion

Superannuation funds say a top AMP executive’s position is increasingly untenable after details of a sexual harassment complaint lodged against him were made public.

And former AMP Capital executive Julia Szlakowski, who left the company in 2018, has hit out at AMP over “persistent and misleading efforts” to downplay sexual harassment that she reported in a seven-page complaint to the company three years ago.

As a result of the investigation into the conduct of her manager Boe Pahari, he was financially penalised as much as $500,000, while AMP settled the claim with Ms Szlakowski.

Mr Pahari was controversially promoted this year to run AMP Capital.

In a separate incident early this month, AMP Australia boss Alex Wade suddenly left the group due to inappropriate conduct, including sending lewd photos to a female employee.

Ms Szlakowski is represented by Maurice Blackburn locally and Golenbock Eiseman Assor Bell & Peskoe in New York. The latter firm represented former anchor Gretchen Carlson in her suit against Fox News boss Roger Ailes.

The ongoing revelations about poor conduct at AMP, released through her local law firm, have sparked a strong reaction from shareholders, despite the wealth manager getting some traction on its financial turnaround strategy.

Law firm Maurice Blackburn said the conduct of Mr Pahari, which AMP described on numerous occasions as just “comments”, represented “serious, persistent and wide-ranging” sexual harassment.

In its statement the law firm — which does not plan to file legal action against AMP — said the company’s investigation confirmed Mr Pahari asked Ms Szlakowski personal questions about men, the age of the oldest man she had dated, gave her his personal credit card and requested she communicate with him via WhatsApp instead of official channels.

Australian Council of Superannuation Investors chief Louise Davidson labelled the further claims about the harassment case involving Mr Pahari “very concerning”, questioning whe­ther his position was tenable.

“Investors expect AMP to provide a greater level of transparency about the case. There appear to be significant cultural issues that need to be addressed,” she said.

“It is hard to see how Pahari’s position as CEO remains tenable in light of these more detailed revelations about the case.”

Ms Davidson urged AMP to consider providing investors with more information about the process of appointing Mr Pahari as AMP Capital boss.

ACSI mostly represents industry funds, which own on average 10 per cent of every top 200 ASX company.

Australian Eagle Asset Management senior portfolio manager Alan Kwan said he was taking a “wait and see” approach to how AMP went about fixing its cultural problems, but more transparency was required.

“They will have to update shareholders with regards to their progress (on improving culture),” he said. “They need to present what’s changed to shareholders and ultimately staff will have to judge that.”

Australian Eagle, an AMP investor, said while the wealth and infrastructure group was trading on an attractive multiple relative to companies like Macquarie Group, it would closely monitor net flows to the capital division and whether it could continue to attract mandates.

An AMP spokesman said the company treated the complaint against Mr Pahari “seriously and conducted an investigation led by an external expert, a QC who specialises in labour and employment law”.

“Many of the claims were not substantiated by the external investigation. Where breaches of AMP’s code of conduct were found appropriate consequences were applied,” he said.

Ms Szlakowski said while she was not initially inclined to comment on her complaint to AMP after it became public, the group’s statements on the matter made her “feel compelled” to defend her reputation.

“If anyone has any doubt about the seriousness of what happened, I would welcome the company releasing the full text of my complaint and the findings of the investigation,” she added.

“I have never received an apology from Mr Pahari.”