- The new CEO of AMP is banker Francesco De Ferrari of Credit Suisse.
- He starts in December, replacing Mike Wilkins who will return to his position as a Director on the AMP Board.
- De Ferrari says he’s confident AMP can earn back trust which will underpin the recovery of business.
Francesco De Ferrari, a long term Credit Suisse banker, is the new Chief Executive Officer of AMP.
His main job, starting December 1, is to restore the reputation of the Australian financial services giant.
“While 2018 has clearly been a challenging year for the business, I’m confident we can earn back trust which will underpin the recovery of business performance,” he says.
AMP shares closed down 1.7% to $3.39.
De Ferrari joins AMP after 17 years with Credit Suisse where he was CEO South East Asia and Frontier Markets and Head of Private Banking Asia Pacific.
The scandal of knowingly charging customers for advice they didn’t get and of misleading the corporate regulator ASIC has claimed the scalps of former CEO Craig Meller, Chairman Catherine Brenner and three other board members.
Last month AMP launched a program to repair its reputation and “earn back trust,” by compensating customers for lost earnings, strengthening risk management systems and controls, and cutting fees on its superannuation products.
AMP’s first half profit fell 74% to $115 million, driven down by provisions to compensate customers for financial advice they paid for but didn’t receive.
And headwinds remain for the second half of the year.
De Ferrari will succeed Mike Wilkins, who has served as interim CEO since April. Wilkins will work with De Ferrari to ensure a smooth handover before returning to his position as a Non-Executive Director on the AMP Board.
De Ferrari will join the AMP Limited Board as an Executive Director at the first Board meeting in January 2019.
AMP Chairman David Murray says Francesco is an outstanding leader with a strong track record in international wealth management and extensive experience in redesigning business models to drive turnaround and growth.
“During his time with Credit Suisse, Francesco built strong teams and successfully set a culture that balanced the interests of clients, shareholders and all other stakeholders,” says Murray.
“His experience of transforming and driving growth in businesses in Asia and Europe will be invaluable as he addresses the significant challenges facing both our business and the wider financial services sector in Australia.
“We have designed a remuneration structure to drive the recovery of AMP and recognise the degree of challenge in the task ahead. His remuneration and incentives are directly aligned with the interests of shareholders.
“With his track record of commitment to clients and business performance, I have no doubt Francesco is the right person to lead the recovery of AMP and set the strategy for future growth.”
De Ferrari says AMP is an iconic Australian company with strong, market-leading positions in wealth management, insurance and asset management.
“I feel very privileged to have been chosen to lead the business and to have the opportunity to set and shape its future,” he says.
“Throughout its history, AMP has been driven by a strong sense of purpose, helping customers plan for tomorrow and supporting them through the critical moments of their lives.
“I’m encouraged by the process of change already initiated by the Board, and I’m committed to accelerating this change, while maximising the opportunities we have both in Australia and internationally.
“I am excited by the opportunity and am looking forward to working with Board and the team at AMP to restore the company to a position of strength and drive its future growth.”
His base salary will be $2.2 million. Short and long term incentives could more than triple that.
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