AMP scraps executive bonus' worth A$10.8m

AMP was slammed at the Hayne royal commission over the fee-for-no-service scandal.

AMP has scrapped short-term executive bonuses and cut directors' fees ahead of its annual meeting in the wake of the Hayne report.

The financial services provider suffered a 97 per cent drop in full-year profit as it set aside millions in customer remediation over various issues, including the fee-for-no-service scandal.

Its annual report released to the market this morning said former chief executive Craig Meller and former advice and banking executive Rob Caprioli will forfeit A$10.8 million ($11.16m) in unvested incentives.

"This reflects their overall accountability for the 'fee for no service' issues that AMP had previously disclosed to ASIC and which were addressed during the financial advice hearing block of the royal commission," AMP said in its annual report.

Asked whether this would also affect New Zealand executives, an AMP spokesman said: "The bonus outcomes for the New Zealand business were reflective of the overall performance challenges the group faced."

AMP was slammed at the Hayne royal commission over the fee-for-no-service scandal and allegations prior management misled the regulator numerous times.

The revelations led to the departures of Mr Meller and chair Catherine Brenner, while former advice boss Jack Regan did not return to work following commission hearings.

Last May, AMP suffered a "first strike" pay protest by shareholders at its annual meeting. A second strike this year would mean shareholders could vote for a possible board spill.

"There is no one 'right' remuneration model that can be applied as suitable for all businesses across all situations, and we recognise there are different views about remuneration practices," the annual report stated.

"We consider and attempt to balance the expectations or requirements of our customers, employees, shareholders, proxy advisers and regulators, which are increasingly less aligned."

AMP said further changes to board responsibilities and fees have been implemented for 2019.

"I would like to stress that your board has ensured there have been consequences for people at AMP as a result of the circumstances of 2018," chairman David Murray said.

"I would also like to stress, however, that any remuneration arrangements must be designed to attract and retain the people needed at all levels of work to conduct AMP's business. Accordingly, the board has been mindful not to unduly penalise the majority of employees who continue to do their jobs."