AMP reversed its July promotion of Boe Pahari to CEO of the financial conglomerate's money management arm, AMP Capital, citing shareholder pushback relating to a 2017 sexual harassment complaint against the executive.
Mr. Pahari will return to his previous role as global head of AMP Capital's infrastructure equity business, which he retained when he was promoted in July. The infrastructure equity business had A$23 billion ($15.8 billion) in assets under management as of June 30.
Francesco De Ferrari, AMP CEO, will assume direct leadership of AMP Capital on an interim basis while a search process is conducted, a news release said.
An AMP spokesman said he had no details regarding how long the search, covering candidates both in Australia and overseas, would take.
The move was part of a broader shakeup Monday which saw the departure of David Murray, the chairman of Sydney-based parent company AMP, as well as AMP Capital's chairman, John Fraser.
Debra Hazelton, an AMP board member, replaced Mr. Murray as chairman of AMP while Michael Sammells, also a board member, replaced Mr. Fraser as chairman of AMP Capital.
The release attributed the high-level personnel changes to "feedback expressed by some major shareholders regarding the appointment of Mr. Pahari as AMP Capital CEO on July 1, 2020." Mr. Murray, in the news release, insisted that the company's response to the 2017 complaint against Mr. Pahari had been appropriate but conceded a number of AMP shareholders held a different view.
Though "my view remains that (the complaint) was dealt with appropriately in 2017 and Mr. Pahari was penalized accordingly," Mr. Murray said he would step down to take responsibility for the unanimous decision to promote Mr. Pahari.
An AMP spokesman declined to provide details regarding how Mr. Pahari had been penalized or comment on news reports that a quarter of the key executive's A$2 million ($1.4 million) bonus in 2017 had been docked.
In a separate statement released by AMP late Monday, Mr. Pahari apologized to Julia Szlakowski, the firm's former institutional director, unlisted, Americas who filed the complaint against him in 2017 and left the company the following year.
"The best way I can make amends is to do the job I have been given to the best of my ability," Mr. Pahari said.
A statement Monday by the Australian Council of Superannuation Investors welcomed AMP's announcement of Mr. Pahari's "removal" as an "acknowledgment by the company that significant change needs to occur."
"Investors will be continuing to engage with AMP to understand how these decisions were made and how the company intends to strengthen company culture," the ACSI statement said.
The AMP statement and one released by Ms. Szlakowski's law firm Monday made it clear deep disagreements remain on the topic of whether AMP was giving Ms. Szlakowski's harassment complaint appropriate consideration.
Also on Monday, AMP — for the first time — released the conclusion of its internal investigation, led by Queen's Counsel Andrew Burns, which found "poor judgment" on Mr. Pahari's part, citing "one moderate and two minor incidents" that added up to "a relatively modest breach of the AMP Workplace Behavior and Equal Opportunity Policy."
Still, the report concluded that the board found "Mr. Pahari's comments and behavior in this matter were unacceptable and apologizes to Ms. Szlakowski for the distress caused at the time."
Ms. Szlakowski's lawyer, Josh Bornstein, a principal with Melbourne-based law firm Maurice Blackburn, called for the full release of AMP's report to counter what he asserted was the firm's downplaying the extent of "the sexual harassment perpetrated against Ms. Szlakowski."
"AMP has still not publicly acknowledged that Ms Szlakowski was sexually harassed, but rather hid behind a series of weasel words," said Mr. Bornstein, in a Maurice Blackburn news release Monday. "There is no reason why AMP should not release the requested documents to us forthwith, particularly in light of today's significant developments."
AMP Capital reported A$189.9 billion in assets under management as of June 30.
