AMP to release sexual harassment details, won't sack anyone

Finance company will reveal what the board read before deciding Boe Pahari should be promoted to AMP Capital CEO.

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AMP Limited (ASX: AMP) announced to the market that it would release its report into sexual harassment allegations against AMP Capital chief Boe Pahari.

The finance company's board had been attacked this week by the alleged victim of the harassment, federal politicians and investors for overlooking serious conduct accusations in promoting Pahari to the CEO role.

Pahari was accused of a series of unwanted advances in 2017 towards a female subordinate, who filed a complaint and later left the company.

Meanwhile Pahari was promoted to the position of AMP Capital chief executive.

AMP had consistently defended that decision, saying the offences were found to be "low level".

But the details of the allegations were made public this week, which has contested the company's judgment.

The allegations included the male executive sending the employee on a frivolous work trip to London, saying she made him look like a "limp dick" when an offer to buy her clothing was refused, unilaterally altering her hotel booking and requesting communication over Whatsapp to avoid detection.

The alleged victim called for AMP to release the full report that the board had considered before promoting Pahari.

On Wednesday morning, AMP released a statement to the ASX that it would meet that request.

"The AMP board is willing to release the QC's investigation report, which includes its findings," the statement read.

Other than Pahari and the alleged victim's names, all other identities would be redacted.

Labor Senator Deb O'Neill told Nine on Tuesday that both Pahari and AMP chair David Murray should resign.

"It's time for a very significant shake-up in AMP. There are massive cultural problems."

Louise Davidson, boss of share investor lobby group Australian Council of Superannuation Investors, said Pahari's position was not tenable.

"It concerns me particularly that the company has tried to downplay the seriousness of the [alleged] sexual harassment."

AMP, in Wednesday's statement, still defended the board's decision.

"The current group board was advised of the matter prior to Mr Pahari's appointment as AMP Capital CEO and another review was undertaken," the company stated.

"Following that review, all board members were satisfied with the thoroughness of the investigation and the process followed."

AMP's share price had fallen 1.23% to $1.45 by lunchtime Wednesday.

Motley Fool contributor Tony Yoo 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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