The retention of senior executive Boe Pahari after alleged sexual harassment claims in 2017 and his elevation to chief executive of AMP Capital in 2020 had infuriated shareholders who wanted heads to roll.
Pahari had paid a financial penalty which consisted of losing 25 per cent of his bonus,a settlement to his alleged victimJulia Szlakowski and the payment of her and AMP’s legal fees. The payments totalled more than $1.5 million,people familiar with the deal toldThe Sydney Morning Herald andThe Age.
By the time a few directors drove to AMP’s head office in Sydney on a chilly Sunday morning and the remainder joined via a Zoom meeting,theresignation of Fraser and Murray was a formality.
Since Allan Gray had thrown down the gauntlet on Thursday the eight directors had gone into hyperdrive - exchanging calls and assessing options. The workshopping had been completed.
By Sunday all directors were aware there was no room for negotiation. They knew there was a groundswell among other shareholders that AMP needed to deal with the escalating crisis surrounding the promotion of Boe Pahari to lead the company’s largest and most important business,AMP Capital.
AMP believed that Allan Gray had corralled a number of Australian shareholders who together had enough firepower to control the board. Mawhinney denies it had sought the support of other large investors.