The Business Times

Norway sovereign wealth fund backs HSBC bonus policy reform

Published Mon, Apr 29, 2024 · 01:47 PM

NORWAY’S US$1.6 trillion sovereign wealth fund, one of the world’s largest investors, will support HSBC’s proposed bonus policy change for so-called material risk takers (MRTs), the Norwegian fund manager’s updated voting intentions showed on Monday (Apr 29).

HSBC, one of the world’s biggest banks, seeks to reclaim full discretion over bonuses payable to MRTs, after Britain last year threw out European Union (EU) rules that capped such payments.

The bank said that approval of the resolution will increase its ability to recruit and retain employees, with a significant number of its MRTs based outside the EU where most competitors do not have to comply with similar restrictions.

Norway held a 2.74 per cent stake in HSBC at the end of 2023, valued at the time at US$4.3 billion, according to the Norwegian fund’s most recent disclosure.

HSBC’s May 3 annual shareholder meeting is the first since the bank last year defeated a resolution backed by Hong Kong-based shareholders and by major investor Ping An to potentially spin off its lucrative Asia business. REUTERS

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Banking & Finance

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here