The top leaders of the British-based bank meet shareholders – again – and ask them to reject proposals it should revert to being a regional pure play.
If recent media reports are anything to go by, the traditional business trip to Asia is not what it used to be for HSBC's senior executives. What was once likely to be a pleasant jaunt to Hong Kong, its former head office in a long distant past – has instead become a fraught exercise.
If previously they went from meeting to meeting lined up with fawning local employees and important clients, they now have angry shareholders to contend with, both large and small.
According to one of the main English language newspapers, the «South China Morning Post» (SCMP registration, paywall), this past Monday was the second time in eight months that the bank's CEO and chairman met shareholders in the city.
Convention Hall Showdown
The «SCMP» reported that HSBC chairman Mark Tucker, CEO Noel Quinn, and Asia-Pacific chairman Peter Wong held an informal meeting with over 1,000 shareholders at a convention hall in Kowloon Bay.
At the meeting, all three called for shareholders to reject two resolutions that will be voted on at its next AGM on 5 May asking for a higher dividend and a spin-off of its Asian business.
But it seems they faced a certain amount of resistance if the «SCMP» and other media are anything to go by. Several shareholders apparently spoke at the meeting supporting the spin-off while urging it to restore its dividend to pre-pandemic levels.
Retirees Up in Arms
«The Standard», another local English language newspaper, said the bank would be facing up against everyone from retirees, taxi drivers, and local councilors as it faces repeated calls by its largest shareholder, Ping An, and local activists, to revert to being a regional bank, as finews.asia has reported and commented on at various junctures in the past.
Although both the higher dividend and the spin-off are likely to be voted down at the upcoming AGM given the three-quarters majority threshold needed to pass – one thing is certain.
The issue will continue to percolate in the background as long as management and shareholders disagree on what creates real value at the bank. That portends years of jet lag, and sleepless nights, for the bank's leadership team.
