The AMP Ltd (ASX: AMP) share price might be in for a rocky future, as its newest CEO reportedly warns the company's revamp "[is] not going to be a one-year transformation".
The embattled financial services company has struggled in recent years as it works to refine its core business.
Over the last 5 years, the AMP share price has slipped 79%. It has also fallen 29% since the start of 2021.
Continuing the theme, shares in AMP are in the red today. They're currently swapping hands for $1.087 apiece, 1.18% lower than yesterday's close.
Let's take a closer look at the comments from AMP's brand-new CEO.
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AMP's new CEO focused on long term changes
Alexis George, who took on the CEO role at AMP on 2 August, has warned the company's shareholders not to expect AMP to recover overnight.
George told the Australian Financial Review (AFR) the company needs to invest in new technologies to recover from its slump. Those new technologies need to allow more ordinary Australians to seek out AMP's financial advice services.
The publication quoted George as saying:
If we really want to allow ordinary Australians to get advice, then we've clearly got some work to do because all the research will tell you they don't want to pay what it costs to deliver advice at the moment.
She reportedly commented that AMP may need to lower its prices if it wants to market financial advice to the public.
Right now, AMP is planning to demerge its AMP Capital Private Markets business. The business deals in infrastructure equity, infrastructure debt, and real estate.
The AMP share price gained 0.8% on news of the demerger.
On announcing the plan, AMP stated the demerger will see both AMP and its Private Markets business "better equipped to pursue and allocate capital to distinct growth opportunities and realise efficiencies".
After the demerger, AMP's main business will be in wealth management, investment, and banking, with a focus on retail.
According to the AFR, AMP's current management has been distracted from the company's major business. If true, distracted management might be one reason AMP's shares have been so heavy lately.
George reportedly stated she will review the company's management before she decides the makeup of her executive committee.
AMP share price snapshot
The AMP share price has slipped 30% year-to-date. It is also currently 27% lower than it was this time last year.
The company has a market capitalisation of around $3.5 billion, with approximately 3.2 billion shares outstanding.
