Underscoring the dramatic effect criticism from an activist shareholder can have, London-based HSBC this weekend emailed a statement to select financial journalists that was largely dismissive of recent criticism from the California Teachers’ Retirement System (CalSTRS).
America’s second largest pension fund sided with hedge fund Knight Vinke Asset Management against the London-based bank, Europe’s second largest, for its “casual dismissal” of Knight Vinke’s performance and governance concerns.
“We welcome a constructive dialogue with our shareholders and are disappointed that this letter has been leaked,” the bank statement said, adding that it believes Knight Vinke’s “principal points have already been fully addressed.”
CalSTRS wrote to HSBC chairman Stephen Green in support of concerns raised previously by fellow shareholder Knight Vinke. The letter from CalSTRS, portions of which were quoted by the U.K.’s Observer newspaper, also criticized Simon Robertson, the bank’s senior independent director, for shrugging off Knight Vinke’s request for a strategic review, claiming that his reaction suggested HSBC’s “complete lack of respect for proper corporate governance.”