AMP guts UK planning arm as Mohl’s pay revealed
AMPhas announced a further 1900 job cuts from its troubled UK Financial Services arm, mostly from the ranks of its financial planners, at the same time as details of chief executive Andrew Mohl’s remuneration were revealed.
The 1900 job losses, coming on top of the 1,500 job cuts already announced in the UK this year, will include 700 financial planners as a result of a decision to close the group’s Direct Sales Force in the UK.
Another 300 advisers will be terminated due to the closure of the household adviser channel, which sells primarily non-regulated products.
The cuts come as Mohl’s remuneration details were released, revealing he will be paid a base salary of $1.5 million with a minimum superannuation guarantee payment of $10,520 per year, as well as short and long term incentive payments.
The short term incentive payment will be between 100 per cent and 200 per cent of his base salary, to be delivered through a combination of cash and restricted shares.
The long term incentive will involve the payment of 200,000 shares or performance rights every year until 2005 if Mohl remains chief executive.
These performance rights are in addition to the 92,278 granted to Mohl when he took up the role as the managing director of AMP’s Australian Financial Services division.
Both the short and long term incentive salary components of Mohl’s remuneration are subject to shareholder approval at AMP’s next annual general meeting in May 2003.
The UK job cuts come as a result of a continuing review of AMP UK activities, and the separation of the UK Financial Services businesses into two streams, UK Life Services and UK Contemporary Financial Services.
The changes will include the creation of a self-employed mortgage advisory service group of 50 to 150 financial planners under UK Life Services, which will provide financial advice on mortgages and protection products.
A new self-employed financial planning group of 50 to 100 financial planners will also be created and will transition from UK Life Services to UK Contemporary Financial Services when operational.
Mohl says that the shake out in the UK business comes as a result of the need to create a competitive and sustainable business.
“These have been difficult decisions to make because of the impact on our people,” Mohl says.
“However, given tough equity markets and the well-publicised issues of the UK life market, we have no choice,” he added.
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