“This reflects their overall accountability for the ‘fee for no service’ issues that AMP had previously disclosed to ASIC and which were addressed during the financial advice hearing block of the royal commission,” AMP said in its annual report.
The only executive to get a short-term cash incentive was AMP Capital chief executive Adam Tindall, whose total $3.31 million package made him AMP’s best paid executive.
This reflects their overall accountability for the ‘fee for no service’ issues […]
AMP annual report
Chief executive Francesco De Ferrari, who started work in December, was paid a total of $1.28 million.
AMP said it had to take account of Mr De Ferrari’s remuneration package at Credit Suisse, where he was head of Asia Pacific private banking, in order to hire a CEO of the necessary calibre.
“Given the circumstances of the royal commission, at the time it was unlikely we could appoint an executive from within Australia,” AMP said.
AMP was slammed at the royal commission for charging fees for no service and misleading regulators about it.
The revelations led to the exits of Mr Meller and chair Catherine Brenner, and the retirement of former advice boss Jack Regan.
AMP in May cut non-executive directors’ fees by 25 per cent with immediate effect, and reduced them again from January 1 this year.
It cut fees to non-executive directors for serving on the AMP Capital board from $78,900 to $56,300, and for membership of its audit and risk committees from $16,900 to $10,000.
The chairman’s fee will fall from $850,000 to about $660,000 in 2020, with the final amount to be decided in the second half of the current financial year.
AMP shares were valued at $2.28 before the start of trade on Wednesday, down nearly 60 per cent on a year ago.