AMP Chart, page-58

The news is that there are 6 potential CEOs - all external, 4 from overseas. This will be the first external appointment of a CEO since AMP listed 20 years ago. It will undoubtedly result in some level of senior management clean out. Given the results before these latest matters this would seem justified. It seemed to have a strategy of cost cutting, acquisition for most of its growth, enabling more cost cutting, with exception of the bank and some of the AMP Capital business. Although some of this is low margin mandates from overseas.

The problem with the new CEO is going to be the Grouch Marx club membership joke. "I don’t care to belong to any club that will have me as a member". If someone is willing to take on this job, do they really understand the industry and problems they are buying into? That 4 of the candidates are from overseas suggests there is a high risk they will not. It is highly likely that no candidate will fully understand or have the experience in running the integrated model. This experience is required, even if you are going to dismantle it - which David Murray says they are not.

My money is on a CEO with fund management experience being appointed or banking experience. A new CEO will lead to senior management change. I do worry that AMP will get the CEO with the experience needed to do the job of increasing value.