AMP shareholders have overwhelmingly voted against its executive pay packets after the wealth manager handed down a $2.5 billion loss for the financial year.
AMP paid $190 million in misconduct fees to clients over the year, which combined with writedowns to account for the fallen value of some assets and investments prompted the board to scrap dividend payments, the company told shareholders at its annual general meeting on Friday.
“This is understandably disappointing for shareholders, but this decision was made in the long-term interests of your company,” AMP chairman David Murray said in the meeting, which was broadcast on the internet.
More than 67 per cent of shareholders attending the online meeting voted against the company’s executive remuneration report, representing a first strike against the board. If a company records two consecutive strikes, a motion to spill the board is voted on.