AMP Ltd (ASX: AMP) shares dropped to a record low in May, can new management steer it back on track?
AMP share price
New AMP Capital CEO named
AMP has announced Shawn Johnson as the new CEO of AMP Capital. He has a colourful and decorated career, previously a Boston-based investment manager and a former US Navy Lieutenant.
On top of this, Johnson was also a former managing director and chairman of the global investing and banking giant, State Street.
Johnson will take the reins on 28 June 2021.
He will replace Boe Pahari, who was demoted to head of infrastructure equity due to shareholder disapproval stemming from a sexual harassment claim that settled in 2017.
Johnson’s appointment comes at AMP Capital’s most tumultuous time in its history with the AMP share price nearing record lows.
My thoughts on AMP
Johnson faces a gargantuan task ahead of him, especially as AMP continues to face regulatory scrutiny.
In addition, AMP is experiencing record outflows of funds from its superannuation arm.
As the great Oracle of Omaha, Warren Buffet says, “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
In my view, there are just a lot of ways to lose and few ways to win.
I would rather focus on businesses that are experiencing structural tailwinds as per the Rask Investment Philosophy.
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