Expert Corporate Governance Service (ECGS)
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HSBC – AGM 24 April 2020

Item 1: Annual report and accounts


The group reported results substantially below targets and the analysts' forecast. "One of the deepest restructuring and simplification programmes in HSBC history" announced. HSBC will cut 35,000 jobs (15%) over three years.


Item 2: Remuneration report


The salary of Noel Quin, new CEO, exceeds peer medians and will increase by 2.5%. The sum of the base salary and his fixed pay allowance is £2,97m (340% of FTSE100 median salary) and this remuneration is not subject to any performance condition. In 2019, HSBC did not achieve all its targets but the CEO's bonus was 132% of salary and despite the challenging year, drop in results and announced massive restructuring and jobs cuts. In the event of important restructuring and job cuts, executives should cut their own incentives or at least freeze any remuneration increase.


Item 18: Shareholder proposal


As last year, the Midland Clawback Campaign Shareholder group requires to remove or effectively eradicate the oState Deductionpfeature of the Post 1974 Midland Bank Defined Benefit Pension Scheme. The same proposal, with minor rewording and further arguments, was voted down by over 96% of shareholders and only 3.5% of investors voted in favour of the resolution.


Update from 1 April 2020 (after the publishing of the ECGS report)


After the Bank of England request, HSBC has cancelled the fourth interim dividend and until the end of 2020 HSBC will not pay dividends or undertake any share buy-backs in respect of ordinary shares.

HSBC Holdings PLC (UK Reg)

HSBC Holdings is a financial services holding company. Through its subsidiaries, Co. operates four businesses: Retail Banking and Wealth Management, which serves customers through four businesses: Retail Banking, Wealth Management, Asset Management, and Insurance; Commercial Banking, which provides working capital, term loans, payment services, and international trade facilitation; Global Banking and Markets, which delivers a range of transaction banking, financing, advisory, capital markets, and risk management services; and Global Private Banking, which provides a range of private banking services. At Dec 31 2017, Co. had total assets of US$2.52 trillion and deposits of US$69.92 trillion.


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