The AMP Limited share price falls on plans to replace CEO

Shares in AMP Limited (ASX: AMP) started the week down 1.25% to $5.16, after the company announced that Chief Executive Officer Craig Meller will step down around the end of 2018. AMP stated both internal and external candidates will be considered to replace Mr Meller.

The rumour of a succession at the helm of the financial services company has been around for some time now, with AMP’s disappointing performance almost begging for a restructure of the business under new management. The results for FY2017 announced on February 8 didn’t provide respite, with the 114% increase in the group’s underlying profit dented by a 2.5% decline in earnings from AMP’s core wealth management business.

Speculation surrounding the replacement of the CEO intensified in February, on the news that AMP was conducting an extensive portfolio review that could lead to the divestment of underperforming operations, starting with AMP’s troubled life insurance business.

Any new developments will most likely be announced at AMP’s annual general meeting on May 10.

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Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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