AMP Ltd (ASX: AMP) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) diversified financial services company closed yesterday trading for $1.815. In early morning trade on Tuesday, shares are changing hands for $1.792 apiece, down 1.3%.
For some context, the ASX 200 is down 0.3% at this same time.
This comes following major leadership news.
Here's what's happening.
Image source: Getty Images
AMP shares dip on CEO succession
This morning, investors learned that Blair Vernon will take the reins as the company's new CEO.
Sitting CEO, Alexis George, will retire from her executive roles on 30 March. George has served as AMP's CEO since August 2021, overseeing a period of significant transformation and growth for the company.
Indeed, AMP shares have gained around 70% over this period, not including the ASX 200 stock's dividends.
Following her retirement, George will be available to AMP to assist with the leadership handover and ongoing support.
As the current chief financial officer (CFO) of AMP, the company noted Vernon's appointment as CEO will help to ensure a seamless transition and ongoing execution of its key strategic initiatives.
Indeed, Vernon already has served as acting CEO for AMP Australia from August 2020 to January 2021.
Vernon will earn a base salary of $1.4 million per year, along with a range of incentive opportunities.
A word from management
Commenting on the CEO transition that's yet to lift AMP shares today, chair Mike Hirst said:
Alexis has guided AMP through a significant transformation that has streamlined the organisation and focused each business on its strongest growth opportunities. She stabilised the business and oversaw the successful sale of AMP Capital and the Advice business whilst building a customer focused culture.
Hirst noted that the board was "unequivocal in its view that Blair brings the right breadth of experience and capability to lead AMP in its next phase of growth as CEO".
He added:
Blair has built confidence by tightening financial management, steering our capital return program and successfully executing both the AMP Capital separation and the AMP Advice sale and partnership. The Board congratulates Blair on his appointment and looks forward to working with him and our excellent leadership team to build on the positive momentum within the business.
George said:
AMP has undertaken significant transformation to become a simpler, customer-focused, and growth oriented organisation. I am proud of our achievements over the past five years, particularly helping our customers retire with confidence.
Incoming CEO Vernon concluded, "AMP is delivering against its strategy, and I look forward to continuing to work with my colleagues in executing our strategic ambitions and delivering positive outcomes to customers, shareholders, communities and colleagues."
With today's dip factored in, AMP shares remain up 12% since this time last year.
