HSBC braces for shareholder revolt against boss Noel Quinn over bank’s alleged ties to Hong Kong human rights violations
Critics: Boss Noel Quinn was paid £5.6 million
HSBC is bracing for a shareholder revolt against boss Noel Quinn over the bank’s alleged ties to human rights abuses in Hong Kong.
Investor adviser Pirc has targeted the bank – a major lender in both China and the UK – ahead of its annual meeting on May 5.
It has instructed backers to vote against Quinn’s re-election to the board after HSBC was criticized by politicians in Britain and the US for activities such as freezing the bank accounts of Hong Kong activists and blocking pension payments for Hong Kong citizens who have fled to the United States. UK.
Pirc said, “While the full impact of these issues has yet to be determined, these practices are considered examples of a corporate culture that is not aligned with the interests of all stakeholders.”
It also urged investors to vote against HSBC’s salary report, which the company says handed over an outrageous sum to Quinn last year – £5.6 million – and to oust Dame Carolyn Fairbairn, chair of the remuneration committee.
HSBC is one of several FTSE companies that could face backlash from increasingly active investors this year, especially as concerns over executive pay rise during the cost-of-living crisis. Last week, AstraZeneca boss Pascal Soriot was another high-profile name targeted by Pirc, who said he should be removed due to the company’s mounting legal battle.
Unilever could face a revolt after another proxy adviser, Glass Lewis, said it had “serious reservations” about how much boss Hein Schumacher will be paid. His starting salary on arrival in July will be around £1.6 million, which is 18.5 per cent more than his predecessor Alan Jope.
The Mail on Sunday may reveal that ShareAction, a responsible investing charity, has produced a hit list of 49 companies it will urge investors to target at annual meetings in the coming months.
The list includes British Airways owner International Airlines Group, online grocer Ocado and supermarket giant Sainsbury’s. HSBC said it had an “ongoing commitment” to Hong Kong, adding: “Like all banks, we must obey the law and the instructions of regulators in every region in which we operate.”