AMP's Batchelor steps down
AMP chief executive and managing director Paul Batchelor has stepped down following a major fall in the company's share price.
Tuesday, September 24th 2002, 12:10PM
In the past week more than A$2 billion has been wiped off the company's market value.
AMP has announced that Andrew Mohl will be the acting chief executive, and that chairman Stan Wallis will also step down six months after the appointment of a permanent replacement for Batchelor.
The board changes after AMP shares were suspended from trade last week after regulators forced the company to acknowledge that its UK subsidiary Pearl had traded under minimum capital requirements and will need an injection of A$1.42 billion.
With the UK market again falling overnight to six year lows AMP may be forced to inject even more money into its subsidiary to make sure it meets capital requirements.
Batchelor was appointed in April 2000 after the departure of George Trumbull following the group's abortive takeover of GIO.
AMP sold GIO last year, and the deal ended up costing AMP shareholders more than A$1 billion. Chairman Wallis says the board will conduct an international search for a new chief executive.
"On behalf of the board, I want to thank Paul for his contribution to the company and we wish him all the best for the future," Wallis says a in a statement.
"The board has every confidence based on his track record in Andrew Mohl's ability to lead AMP at this challenging period in AMP's history," he says.
Mohl had been with the company since 1996 and has managed the Australian and New Zealand operations of both its financial services and asset management businesses.
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