Australian financial group AMP unveiled the resignation of its chairman and the demotion of the former chief of its investment management unit Boe Pahari, who was embroiled with a sexual harassment scandal.
AMP chair David Murray has resigned, according to a statement accompanying exchanging filings, following shareholder concerns about alleged misconduct. Murray will be replaced by Debra Hazleton, a non-executive director on the board.
In addition, Boe Pahari has also been demoted from his position of AMP Capital CEO and will resume work at his previous level with a focus on infrastructure equity.
Already Dealt With?
Although internal investigations found that Pahari made comments to a female colleague that breached AMP’s code of conduct, Murray still promoted him nonetheless in June to CEO of AMP Capital and his latest statement insisted that there was no neglect against the grievances.
«The Board has made it clear that it has always treated the complaint against [Pahari] seriously,» Murray said a statement.
«My view remains that it was dealt with appropriately in 2017 and [Pahari] was penalized accordingly. However, it is clear to me that, although there is considerable support for our strategy, some shareholders did not consider [Pahari’s] promotion to AMP Capital CEO to be appropriate.»
Repeated Harassment
Previously, Pahari had already paid a A$500,000 ($360,000) fine in relation to the complaints prior to his promotion. Reported details claim that he repeatedly stopped boundaries to sexually harass an AMP employee and encouraged her to communicate outside of AMP’s detection net.
In the same month, chief of AMP Australia and longtime associate of AMP CEO Francesco de Ferrari, Alex Wade, also stepped down amid reports that he sent led photos to one or more employees amongst other misconduct.
