HSBC is exploring the possibility of holding its annual general meeting (AGM) entirely online, in response to increasing disruptions from climate protests and the escalating costs of hosting in-person gatherings. The London-based bank has reportedly considered a shift to a “digital-first” approach for its shareholder meetings, aiming to streamline the process and minimize external disruptions, according to sources familiar with the discussions.
This year, HSBC is set to host its AGM at the InterContinental London Hotel, with a hybrid format that combines in-person attendance with online participation through the Lumi platform. However, the bank is reportedly weighing the possibility of moving to a fully virtual AGM in the future, which would help reduce significant expenses such as venue rentals, catering, and security costs. Moreover, a virtual-only format would limit the disruptions from climate protest groups, which have previously targeted the bank’s meetings.
One source familiar with the situation stated, “This may be the last year HSBC has an in-person option,” highlighting that the bank has long considered virtual meetings to avoid interruptions from protests. The disruption from climate activists, including those from the environmental group Extinction Rebellion, has been a recurring issue at recent AGMs. In 2022, protesters interrupted HSBC Chairman Mark Tucker’s speech, even adapting the popular song “Money, Money, Money” by ABBA with lyrics aimed at criticizing the bank’s environmental practices. Similar disruptions occurred during the 2023 AGM, which was relocated to Birmingham in an attempt to avoid such disturbances.
HSBC has faced increasing pressure to reduce costs under the leadership of Georges Elhedery, who took over as CEO in September. The bank has committed to cutting $1.5 billion in annual expenses and has undertaken several restructuring efforts, including merging its commercial banking and global banking and markets units while winding down its investment banking operations in the UK, Europe, and the US.
In response to questions about the potential shift to a virtual AGM, HSBC stated that its board had not “considered any proposal to move to a virtual AGM.” The bank emphasized that this year’s meeting would remain a hybrid event, allowing shareholders the option to attend in person or virtually.
The shift to virtual-only AGMs has already been embraced by some companies. In early April, Spanish banking giant Santander held its first fully remote AGM, aligning with a growing trend of digital participation in shareholder meetings. In the UK, many companies have opted for hybrid AGMs since the pandemic, though few have made the transition to fully virtual meetings, fearing potential legal challenges under UK company law.
Despite these concerns, corporate lawyers suggest that the legal risks of moving to a virtual AGM are relatively low, especially if more companies adopt this approach. One lawyer told Financial Times that “there’s a safety in numbers if more companies are doing it,” suggesting that a move towards virtual meetings could become a new standard in corporate governance.
HSBC’s potential move to virtual AGMs reflects broader trends in the corporate world, where the traditional in-person shareholder meeting is increasingly being reevaluated. Companies such as AstraZeneca and Haleon have already implemented digital-first or fully virtual meetings, signaling a shift towards more streamlined and cost-effective ways of engaging with shareholders.
