AMP has named its Financial Services MD Craig Dunn to succeed Andrew Mohl as CEO.

Mr Dunn will work closely with Mr Mohl in the temporary role of COO from mid-October until the end of the year, when he will succeed him.

Mr Dunn's annual salary of $1.4 million will be augmented by yearly performance-related payments of up to $2.8 million in cash and $2.1 million in share options for the first full financial year of his tenure.

AMP Financial Services Director Product Manufacturing Craig Meller will replace Mr Dunn as MD.

Mr Mohl, who has presided over an extended period of recovery at AMP since replacing Paul Batchelor in 2002, says the appointments are a tribute to the financial services provider's internal succession planning.

"As head of AMP's largest business, Craig Dunn has played a vital role in the turnaround of AMP. He understands the company's values and culture, and I am confident he will develop into an outstanding CEO.

"Likewise, Craig Meller is ready for the challenge of leading AMP Financial Services after six years with AMP, including a stint at AMP Bank and leading the Product Manufacturing team."

AMP Chairman Peter Mason says AMP undertook a wide-ranging internal and external recruitment search before choosing Mr Dunn as the new CEO.

Analysts have generally welcomed Mr Dunn's appointment. Morningstar analyst David Walker is supportive and Merrill Lynch retains a "buy" rating for AMP.