13 questions asked at 2023 AMP AGM
April 21, 2023
Here is the text of the 13 questions asked at the 2023 AMP virtual AGM held on March 31. And kudos to AMP for publishing this archive of the nearly 4 hour webcast, along with this full transcript.
1. When disclosing the outcome of voting on all resolutions today, including this buyback resolution, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative adopted by the likes of Metcash, Altium , Dexus, Webjet and Tabcorp.
Answer: no.
2. Could the CEO summarise her past LTI grants as to their prospects of vesting or lapsing. Also, has she ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme. Please don't say look it up in the annual report and through ASX announcements. It's complicated over many years and the CEO could factually summarise the situation in 60 seconds.
Answer: watch Twitter video.
3. The 2004 annual report stated that AMP had 977,100 shareholders six years after the demutualisation and float. The latest annual report put the number at 454,722, meaning that 522,378 shareholders have dumped AMP over the past 19 years. Given that we still have 40,313 shareholders with an unmarketable parcel, are we planning another offer to take them out, thereby further reducing the size of our register. How many of these offers have we done over the years?
Answer: watch Twitter video.
4. A 15% proxy protest vote against a relatively new chair is very unusual. Could Debra please comment as to which of the proxy advisers recommended against her and what discussions she personally had with institutional investors about how they would vote on her resolution. Does she know which major shareholders voted against her and why? Corporate voting is not a secret ballot in Australia so has the chair investigated who voted against her?
Answer: the acting chair and the chair both declined to answer a very specific question.
5. A question for the external auditor and our audit committee chair Rahoul Chowdry. The market capitalisation today is $3.23 billion when the latest accounts claim we have net assets of $4.17 billion, a $940 million disparity. How much of this differential is explained by post balance date buybacks and capital returns? And how intensive was the investigation of the carrying values? What assets are we continuing to value which the market is not? If this discount to book value continues, will there be a thorough look at the carrying values during the upcoming first half audit process?
Answer: watch Twitter video.
6. Which of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of today's resolutions, particularly the rem report and the chair's re-election?
Answer: watch Twitter video.
7. The chair commented earlier that AMP has out-sourced most voting to fund managers but reaches in to control the voting on climate matters. Could Michael Sammells and the chair comment on why they don't also reach in and control voting on gambling matters? Australians are the world's biggest gamblers with $25 billion lost each year. Enormous harm is caused. Why don't we treat this harm as seriously as climate when it comes to voting and ESG matters?
Answer: watch Twitter video.
8. The chair claimed earlier in the meeting that AMP Superannuation is Australia's biggest retail super fund. But does board candidate Andrew Best believe it is the best super fund? Also, could the best informed person on the stage comment on what metric we are the biggest? Client numbers or assets under management. In the retail space, who is second and third and how big is our lead?
Answer: watch Twitter video.
9. On what basis was Kate McKenzie chosen to chair this item. Does that reflect board ranking and does Kate lead the annual performance review of the chair? Why not just appoint a permanent deputy chair so there is a clear line of reporting if there are issues with the chair and a clear leader in terms of reviewing the chair's performance?
Answer: watch Twitter video.
10. AFIC, Australia's biggest listed investment company, has a clear policy of not investing in gambling companies given the harm they cause. As chair of the audit and risk committee, could Rahoul comment on the board's involvement in deliberations about whether there are any sectors which AMP will avoid investing in. Also, why are we only controlling our super fund's voting position on climate resolutions and not other matters of ESG, such as modern slavery or gambling.
Answer: watch Twitter video.
11. After more than 20 years on National Mutual, AXA and then AMP boards, I was surprised to discover through the Hayne Royal Commission that Rick Allert was still receiving board fees up until 5 years ago through AMP's superannuation subsidiaries. Are any of our former directors still on the payroll through subsidiary boards and what is our current policy on who gets these gigs now?
Answer: watch Twitter video.
12. After lots of Royal Commission brand damage, IOOF decided to rebrand as Insignia a couple of years ago. Has this board discussed the possibility of rebranding AMP given the damage suffered over many years and is the AMP name valued in the goodwill on the balance sheet? Would a name change lead to a write down and have we costed actually ditching either the corporate brand or the operating brand at the customer level?
Answer: watch Twitter video.
13. Thank you for offering shareholders a hybrid AGM this year and also for voicing many of the pre-AGM written questions submitted by shareholders. You've gone above and beyond submitting yourselves to a comprehensive 3 hour Q&A session today. Well done and will you commit to continuing with the hybrid model next year. Feel free to ditch the live telephone option as this is rarely utilised given the range of other alternatives.
Answer: watch Twitter video.
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