Just under 50 per cent of AMP’s shareholders voted against the company’s 2022 remuneration report on Friday, handing the company its first official strike.
If AMP receives a no vote of over 25 per cent next year, resulting in its second strike, ASX rules would require a vote on whether to spill the board.
Commenting on Friday’s vote, AMP’s chair, Debra Hazelton, said that while the strike was “disappointing”, “we hear the feedback from our stakeholders and are committed to continuing to evolve our approach”.
Ms Hazelton acknowledged that the vote was largely influenced by AMP’s lacklustre share price performance, and further compounded by the board’s use of discretion to award higher bonuses, as well as the lack of disclosure of its short-term bonus targets.
“The board appreciates that the share price performance in February of this year may have coloured shareholders’ views of management’s performance. Remuneration was allocated based on performance against the 2022 scorecard — in addition to a number of other factors that occurred during the performance year — that were not envisaged at the start of 2022,” Ms Hazelton said.
Following the fallout of the royal commission, AMP has undergone a significant period of upheaval in recent years. It’s share price is down by over 17 per cent so far this year.
Reflecting on AMP’s share price strife, Ms Hazelton said that while the board and executive are mindful of “the day-to-day share price movements”, it is the long term which remains their focus.
“By successfully executing our strategy and delivering on commitments, the share price will ultimately reflect that — irrespective of the influence of short-term market factors that may often be outside our control,” she said.
“Over the course of 2022, AMP’s share price outperformed the market by about 30 per cent as we progressed our transformation strategy. While the performance since February has reversed part of that gain, influenced as well by macroeconomic factors, we must focus on the long-term trend and where we take the business from here.”
Highlighting AMP’s “clear strategy” moving forward, Ms Hazelton also mentioned its commitment to a $1.1 billion capital return, which it plans to fast-track in response to shareholder angst.
“For both board and management, it is an absolute priority to both complete the current $1.1 billion capital management program and to consider future options for returning any additional capital to shareholder,” the chair said.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
