AMP (ASX:AMP) share price lower despite key new appointment

AMP has named its new CEO of the key AMP Capital business…

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The AMP Ltd (ASX: AMP) share price is edging lower on Friday morning despite announcing a key new appointment.

At the time of writing, the financial services company’s shares are down 0.5% to $1.20.

Despite this, the AMP share price is still up 10% since this time last month.

What did AMP announce?

This morning AMP announced the appointment of its new Chief Executive Officer (CEO) for the AMP Capital business.

According to the release, the company has named internationally respected asset management executive Shawn Johnson as the CEO of AMP Capital.

Mr Johnson previously served as Senior Managing Director and Chairman of the Investment Committee of State Street Global Advisors (SSGA) for almost a decade.

In this role, he had global oversight and responsibility for over 450 investment strategies and US$2.1 trillion in client assets. This includes the management of all SSGA’s private equity businesses.

In addition to this, while at SSGA, Mr Johnson also served as the volunteer Chairman of the Financial Services Sector Coordinating Council (FSSCC) from 2008 to 2010. FSSCC is a non-profit organisation that coordinates critical infrastructure and US homeland security activities within the financial services industry. It works collaboratively with key government agencies.

Furthermore, Mr Johnson has recently been leading his own alternative investments businesses, including management of a global macro hedge fund and various private investment strategies.

What now?

The release explains that as AMP Capital CEO, Mr Johnson will lead its international growth strategy and the proposed demerger of the private markets businesses. The latter is expected to complete in the first half of FY 2022.

He will commence in the role from 28 June and be based initially in Sydney. However, he will also work on a global basis across the key international offices of the Private Markets business.

AMP’s Chair, Debra Hazelton, commented: “We are delighted to announce the appointment of Shawn as AMP Capital Chief Executive. Shawn’s extensive experience and knowledge of global investment management, particularly private markets, makes him an exceptional leader for AMP Capital. His experience as a leader in one of the world’s largest asset management firms, State Street Global Advisors, where he played a key role in markedly growing the business and navigating the global financial crisis, will be invaluable.”

The incoming AMP Capital CEO revealed that he sees significant growth potential for the business and is excited for the challenge.

Mr Johnson commented: “AMP Capital is a globally-respected investment manager, and I’m excited by the significant potential for international growth but also in Australia. I’m confident of its underlying strength and the depth of its investment, distribution, and operational talent. Our focus will be to harness these strengths as we set up as a new, independent organisation following separation from AMP.”

“It’s an exciting challenge to which I believe I can bring my experience, passion and energy for growing businesses and leading a highly skilled organisation. I look forward to working alongside our talented teams, meeting our key clients, and moving our business forward.”

In other news, AMP confirmed that Alexis George will commence as group CEO on 2 August 2021.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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