Just-appointed AMP Capital chief, Boe Pahari, has resigned along with AMP chair, David Murray, following intense pressure over a sexual harassment incident.
The scandal has also claimed AMP director, John Fraser, who resigned at the same time.
Pahari, however, will return to his previous role as head of infrastructure at AMP Capital.
In a statement Murray said: “The Board has made it clear that it has always treated the complaint against Mr Pahari seriously. My view remains that it was dealt with appropriately in 2017 and Mr Pahari was penalised accordingly. However, it is clear to me that, although there is considerable support for our strategy, some shareholders did not consider Mr Pahari’s promotion to AMP Capital CEO to be appropriate.”
After his appointment, Pahari faced scrutiny over a 2017 sexual harassment event that cost him A$500,000 in a reduced bonus.
At the AMP half-year results in August, Pahari laid out a new strategy for the funds management arm that included a tilt to real assets.
However, a number of institutional investors threatened to pull mandates from the embattled firm citing Pahari’s appointment as the trigger.
AMP chief, Francesco De Ferrari, will “assume direct leadership of the AMP Capital business on an interim basis while a search process is conducted for a new CEO of AMP Capital”, the company said in a release.
The statement says Debra Hazelton was named,AMP chair, “effective immediately”.