AMP Ltd (ASX: AMP) shares are having a solid start to the week.
In morning trade, the financial services company's shares are up 1% to $1.08.
Why are AMP shares rising?
There appears to be a couple of catalysts for the rise in AMP shares on Monday.
The first is the ASX 200 index charging higher this morning following a strong session on Wall Street on Friday.
Another catalyst could be the release of an announcement this morning relating to the simplification of its business.
According to the release, AMP has made a number of executive changes following the recent sale of the AMP Capital businesses. These reflect the company's emphasis on its growth businesses of retail banking and wealth management in Australia and New Zealand.
The first sees AMP's chief financial officer (CFO), Peter Fredricson, retire from the role. Instead of replacing Fredricson, the company will consolidate the roles of CFO and group executive transformation, with Blair Vernon taking on the expanded role effective 3 July.
Another change sees the role of chief executive – Australian Wealth Management (AWM) removed with a transition to a new operating model to occur by the end of the year.
Management notes that with the recent transactions largely complete, a flatter organisational structure is appropriate. As a result, the AWM business will be dissolved. Current chief executive, Scott Hartley, will work with the team to transition to a new operating model over the next six months, before departing.
Management commentary
AMP's chief executive, Alexis George, commented:
Following the AMP Capital sales we are a much simpler business, and we need to reflect that in our leadership team and structure. With Peter deciding to retire, the simplification of the structure through combining the CFO and Transformation roles made sense. We appreciate the contribution Peter has made to the company.
The appointment of Blair Vernon to the role will ensure a seamless transition. Blair has been the Group Executive Transformation and New Zealand and has been with AMP since 2009. He is uniquely well-placed to take on the combined role of AMP CFO along with his existing role of Transformation, having played a major role in the simplification of the business. Blair has a strong track record of prudent financial management, delivering sustainable cost reduction, which together with his knowledge of the company will enable him to continue to drive the efficiency agenda.
