AMP share price slips amid expected first strike on remuneration

Shareholders appear to have rejected the company's remuneration report.

| More on:

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The AMP share price is down 0.74% at the time of writing, trading at $1.072
  • The fall comes as the company prepares to receive a first strike on its remuneration report
  • Shareholder feedback to the report encompassed numerous issues, with the company's chair also noting the stock's February falls "may have coloured shareholders’ views of management’s performance"

The AMP Ltd (ASX: AMP) share price is in the red as the company prepares for shareholders to reject its remuneration report at today's annual general meeting (AGM).  

Investors appear to have hit back at management on the back of a tumultuous February for the stock. It tumbled 23% last month amid the release of the company's full-year earnings.

The company's chair Debra Hazelton also addressed concerns over the rollout of the promised $1.1 billion capital return and how AMP Super votes on climate resolutions in a speech published to the ASX.

The AMP share price is $1.072 at the time of writing, 0.74% lower than its previous close.

Created with Highcharts 11.4.3Amp PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is rising 0.71%.

Let's take a closer look at what the company's chair told investors at its AGM.

AMP share price falls amid AGM

The AMP share price is underperforming after Hazelton acknowledged expectations its remuneration report will face a "disappointing" first strike.

A first strike will be called if upwards of 25% of the company's shareholders vote 'no' to its bonuses. AMP expects to take the hit based on votes cast prior to today's meeting. Hazelton said:

While we have already made significant changes to our remuneration framework over the past 12
months based on comprehensive engagement with investors, proxy advisors, remuneration experts
and regulators – we remain keen to understand and respond to feedback.

Such feedback pointed to the board's decision to award a bonus higher than the scorecard outcome and concerns about undisclosed short-term incentives. Hazelton stated AMP is continuously working to improve disclosures and remuneration was allocated "holistically" based on the 2022 scorecard and other factors.

Though, she admitted the stock's February falls "may have coloured shareholders' views of management's performance".

On that note, she dubbed the AMP share price's recent performance "extremely disappointing" but said, while the company's leaders are mindful of day-to-day gains and falls, they remain focused on the long term.

Over time, the company's stock should rise on the execution of its strategy and commitments, according to the chair.

One such commitment is its $1.1 billion capital return, which it plans to fast-track in response to shareholder angst.

Investors were asked to vote to allow another 500 million AMP shares to be bought back over the coming year.

She also clarified how AMP Super votes are decided by third-party fund managers. However, in a move that "indicates how important AMP regards climate risk", it recently moved to direct managers to vote on the topic of climate risks for select energy, materials, and utility companies, where possible.

Meanwhile, the ASX 200 chair looked back at prior challenges facing the company. Hazelton reportedly responded to an aggrieved shareholder saying, as per the Australian Financial Review:

The [Hayne] royal commission upended AMP's business model.

It had an enormous effect – almost existential.

The AMP share price remains around 80% lower than it was prior to the 2018 royal commission.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

Woman and man calculating a dividend yield.
Financial Shares

Why did Macquarie just downgrade IAG shares to neutral?

The IAG share price is down this morning.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Mergers & Acquisitions

IAG share price lifts off on strategic alliance approval

IAG shares are racing higher in Thursday’s sinking market.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Want a financial stock outside the big 4 banks? Macquarie tips 15% upside for this small cap financial

For those searching on the edges, this name could be worth a second look according to Macquarie.

Read more »

A man looking at his laptop and thinking.
Financial Shares

Are IAG shares a buy, hold, or sell following the RAC WA deal?

How does Goldman Sachs rate IAG shares after the $1.35B deal with The Royal Automobile Club?

Read more »

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Broker Notes

8 alternative ASX financial shares to buy instead of bank stocks: broker

Top broker Macquarie has put an outperform rating on scores of non-bank ASX financial shares.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Financial Shares

IAG share price charges higher on $1.35b deal and guidance update

This blue chip has made a big announcement. Here's what you need to know.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Financial Shares

Which is better value right now, Soul Patts or Brickworks shares?

Let's dive in and see what the experts have to say.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

How much upside does Macquarie tip for Pinnacle Investment Management shares?

Pinnacle could be a contender to continue rising, according to experts.

Read more »