Noel Quinn, chief executive officer of HSBC Holdings Plc, right, Mark Tucker, chairman, center, and Peter Wong, deputy chairman, during the bank’s shareholders meeting in Hong Kong, China, on Monday, April 3, 2023. HSBC’s senior executives faced its Hong Kong shareholders from retirees to taxi drivers as the lender seeks to fend off a push in Asia to split the bank. Photographer: Paul Yeung/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
HSBC shareholders are set to vote on proposals at the bank’s annual meeting Friday, including on whether to spin off its Asia business.
Resolution 17 and 18 on the agenda, tabled by a group of investors led by Ken Lui, call for a “strategic review” of the company, including the spinoff proposal and fixed dividends.
These motions have received support from HSBC’s top shareholder Ping An Insurance, which expressed similar views to Lui in a statement.
In March, HSBC advised investors to reject the two resolutions, a stance that was supported by investor advisory firms ISS and Glass Lewis.
On Tuesday, HSBC reported a better-than-expected set of first-quarter results and restored its quarterly dividend.
Speaking to CNBC’s Emily Tan on Friday ahead of the meeting, Lui said that “some of the actions I took put pressure on management, so it delivered a better-than-expected report. I’m satisfied with the performance this quarter. We’ll continue to monitor the conduct of the management.”
However, HSBC CEO Noel Quinn has pushed back on Lui’s resolutions, previously telling CNBC on April 14 he does not believe that fixed dividends are “wise corporate governance and wise capital management for a bank.” He said a dividend payout ratio is more balanced and “is the model of the industry.”
Last month, HSBC said spinning off its Asian business “would result in material loss of value for HSBC shareholders.”
Quinn said management is already improving the performance of the bank and is on a “very good trajectory.”
The “special resolutions”…
Read the full article here