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Advice provisioning drags AMP profit down

Advice provisioning drags AMP profit down

Tim Stewart
— 1 minute read

AMP has taken a 75 per cent hit to its net profit for the first half of calendar 2018 after it revealed it was putting aside $290 million for advice remediation.

AMP has posted a net profit of $115 million for the first half of calendar 2018 as advice remediation costs took its toll.

The company has also announced the appointment of former Treasury secretary John Fraser as a non-executive director, bringing AMP Ltd’s board composition to eight men and one woman.

The sole woman, Patty Akopiantz, has previously announced she will be resigning her board position at the end of 2018.

AMP has also announced the remuneration of its chairman David Murray and acting chief executive Mike Wilkins.

Mr Murray, who commenced his term as AMP chairman on 21 June 2018 following the resignation of Catherine Brenner, will receive an annual fee of $850,000 inclusive of superannuation.

AMP acting CEO Mike Wilkins, who sits on AMP Ltd’s board and was appointed to the role of acting CEO on 20 April 2018, will receive fixed remuneration of $1.46 million inclusive of superannuation.

Mr Wilkins will also receive a fee of $70,100 for the additional responsibilities he assumed as acting executive chairman from 30 April 2018 to 20 June 2018.

AMP is currently searching for a permanent replacement for its former CEO Craig Meller, who brought forward his resignation to 20 April 2018 following revelations of ‘fees for no service’ and board interference in supposedly ‘independent’ reports at the royal commission hearings.

 

Advice provisioning drags AMP profit down
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