HSBC tells investors to reject proposals by unhappy minority shareholders on dividends, restructuring
- Minority shareholder group has called for the bank to increase dividend payments, consider radical restructuring
- Shareholder resolutions follow Ping An’s campaign pressuring HSBC to spin off its Asian business
HSBC’s directors have recommended that investors vote against proposals by a group of frustrated minority shareholders to increase its dividend payouts and consider radical structural restructuring to enhance the bank’s value, such as spinning off its Asian operations.
The shareholder resolutions call for the bank to restore its annual dividend to a pre-pandemic level of at least 51 US cents a share and consider structural reforms “with a view to maximising HSBC’s value, ensuring sustainable growth and protecting the interests of its shareholders in the long run”, including separating its Asian and Western operations.
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HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change
The London-based bank generates the bulk of its pre-tax profit in Asia.
