AMP issues Pahari apology statement
AMP Limited appears to have sought to draw a line under the controversy surrounding the resignation of is chair, David Murray and the effective demotion of AMP Capital chief executive, Boe Pahari by publishing a formal apology from Pahari.
Under the headline of AMP provides update of employment in 2017, the company has quoted Pahari as expressing his regret for events in 2017 and apologising to Julia Szlakowski who made a harassment complaint against him.
However, at the same time, AMP released the conclusions reached by an English QC who investigated those complaints which concluded the incident involved only a “modest breach of AMP Workplace Behaviour and Equal Opportunity Policy”.
The AMP statement was as follows:
“AMP provides the following update in relation to the employment matter in 2017.
AMP has always treated the complaint against Boe Pahari seriously. It remains AMP’s view that it was dealt with appropriately in 2017 and Mr Pahari was penalised accordingly.
The investigation report into Julia Szlakowski’s complaint was conducted by Andrew Burns QC. The conclusion of the report, as provided to Ms Szlakowski in 2017, states in its entirety:
Conclusion
“For these reasons I find that there was poor judgement exercised by [Boe Pahari] during this evening and one moderate and two minor incidents which overall added up to a relatively modest breach of the AMP Workplace Behaviour and Equal Opportunity Policy. However this involved a senior manager who ought to have been observing a high standard of equality and diversity practice and who ought to have had a much better understanding of how his actions might be perceived by and may affect a junior colleague.”
Andrew Burns QC, 19 June 2017
A range of actions were applied by AMP on receipt of the investigation report including both financial and non-financial penalties. A settlement was reached with Ms Szlakowski in March 2018 when she left AMP Capital.
The board reiterates that Mr Pahari’s comments and behaviour in this matter were unacceptable and apologises to Ms Szlakowski for the distress caused at the time.
Boe Pahari commented:
“I deeply regret the events in 2017, and I apologise to Julia Szlakowski.
“I also acknowledge the significant impact the matter has had on our clients, our people, and AMP’s shareholders. I have decided to stand down as AMP Capital CEO in the interests of all parties, and to minimise disruption to the business. I am committed to doing everything I can to see this business and our people reach full potential. The best way I can make amends is to do the job I have been given to the best of my ability.”
Pahari has stepped down as CEO of AMP Capital to resume his former role.
Recommended for you
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
