Troubled bank to spend $2.3m on new exec packages

by AB08 Aug 2018

AMP has revealed details of the multi-million dollar remuneration package its newly appointed chairman and chief executive will share as they lead a series of transformations across the group.

Chairman David Murray was appointed in May and commenced his term on 21 June while acting chief executive Mike Wilkins was appointed on 20 April.

Murray will receive an annual fee of $850,000, inclusive of superannuation and will receive no additional fees for his participation in board committees or subsidiary company boards.

Wilkins’ remuneration arrangements, approved today (8 August) by the board of directors, confirm he will receive fixed remuneration of $1.46m, inclusive of superannuation, to 31 December 2018.  Wilkins will also receive a fee of $70,100 for the additional responsibilities he assumed as acting executive chairman from 30 April 2018 to 20 June 2018.

Due to the interim nature of his role, Wilkins will not be eligible for any short or long-term incentives and AMP may end his appointment before 31 December if a permanent chief executive is appointed.

In this case, Wilkins’ fixed remuneration will be pro-rated accordingly and he will not otherwise receive any director fees while serving as an executive.

According to AMP the packages are “benchmarked against industry standards”. The bank’s statement concluded, “The AMP Board believes the appointments of Mr Murray and Mr Wilkins provide strong and highly experienced leadership in the rebuild of AMP, strengthening governance and underlining the company’s commitment to change.”

Announcing its first half financial results, AMP also confirmed that former Secretary to the Australian Treasury, John Fraser will join its board as non-executive director, effective from September 2018 and subject to pre-appointment processes.

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