Just out in The Australian today.
Francesco De Ferrari must take control of the ongoing AMP circus
JOHN DURIEFollow @John_Durie
AMP boss Francesco De Ferrari. Picture: Britta Campion / The Australian
Surely it’s about time AMP chair and former Credit Suisse adviser David Murray had a chat with former Credit Suisse executive colleague and now AMP boss Francesco De Ferrari about how to run the 171-year-old company.
If Murray needs some legal advice he can turn to fellow board member and former Credit Suisse Australian boss John O’Sullivan.
Francesco’s former Credit Suisse Singapore colleague
Alex Wade walked on Thursday after approaching his old boss earlier this week to discuss a personal conduct issue.
It was clearly decided he should leave.
Wade arrived in town in December 2018 to run the Australian operation and soon after put the cleaners through its financial planners, including ending the long-running payout terms for planners. There are 2000 aligned financial planners on AMP’s books who didn’t have Wade at the top of their gift list.
The company won’t discuss the conduct in question but it was obviously considered of such an order that Wade should depart.
AMP has now sold its life division, which means it has three operations left.
New Zealand, which it reportedly wants to exit, was being run by 11-year veteran Blair Vernon. He will now run Australia, which includes the angry planners and the bank run by Rod Finch.
Then there’s
AMP Capital which is run by Boe Pahari — more on him later.
Where Murray should get involved is to ask De Ferrari what exactly he is doing to earn the $7.4m he pocketed in the 2019 financial year and something similar last year.
Now insurance has been sold to young Clive Cowdery at Resolution Life it seems Francesco must be looking for something to do between 9am and 5pm.
If it’s strategy we will look for some clues next Thursday when he releases his latest results, but hopes are not high.
If it’s culture then the abrupt departure of his old mate Alex, running the Australian operation, tells you everything you need to know.
In all seriousness, how many layers of management does the shrinking empire really need?
Maybe on behalf of shareholders, Murray could raise the issue and even hold Francesco to account on the issue.
Fact is, right now AMP is fast becoming a hot soap opera.
Wade replaced royal commission star and 20-year veteran Jack Regan.
While not commenting on Vernon’s ability, it is noteworthy that De Ferrari would see the need for an Australian boss.
None of this tells a pretty tale about corporate culture, which is another reason why you wonder why De Ferrari isn’t taking direct control of the shop.
On August 13 the market will hear from Pahari, who has shot to fame as head of AMP Capital after serving time at, among others houses, ABN Amro.
Pahari, of course, was cleared after an examination of complaints from what shareholders were told was from one person alleging eight counts of sexual harassment on one night, of which five were dismissed and three had some factual basis.
He was fined $500,00, which to you and me is a lot of money but to Boe was 25 per cent of his annual bonus. Next week we get to learn about his strategy, which is about time given he has been in the job for two months, selected his team and been surrounded by constant talk about his past behaviour.
De Ferrari, who has been at AMP since January last year, has appeared in the press several times appealing for some sense in governing financial advice.
Frankly he should get his own house in order before telling others what to do.
Thursday’s news is not exactly evidence of life looking better within AMP, which must be of some concern to Murray given the stock on a total return basis has underperformed by 64 per cent since he took the job in May of 2018.
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