HALIFAX Bank of Scotland's annual general meeting today got off to a stormy start after a shareholder left in protest because chief executive Andy Hornby hadn't turned up.
The Edinburgh-based bank held its AGM on the day that it unveiled plans to ask shareholders for an additional £4 billion through a rights issue.
But the chief executive and finance director Mike Ellis only appeared through a London video link.
When they appeared on screen, one shareholder shouted "they should be here – I'm leaving in protest", before storming out of the auditorium.
Board chairman Dennis Stevenson told the meeting, which was held at Glasgow's SECC: "I regret that he's not staying. Can I say that they are very disappointed not to be here but it's massively in the interest of the company that they stay in London this morning."
Mr Hornby told shareholders that the bank's prudent strategy would serve shareholders well over the next few years.
He said: "Ours is a strategy for all weather – good and bad. The worldwide credit crunch has presented HBoS, as well as other banks, with real challenges.
"But our prudence will serve shareholders well in the long term."
Outlining the bank's trading last year, Mr Hornby said HBoS had delivered a "really resilient performance in demanding conditions".
The board panel faced tough comments from shareholders at the meeting.
One, who said he was from Edinburgh, stated: "I've always been appalled at the number of zeroes in the salary of the people sitting on the platform and on screen.
"I'm wondering what justification there is for all those zeroes earned?"
Another shareholder, from Glasgow's east end, said: "You've been playing Monopoly with people's money. It's all a big gamble."
Responding to comments about a drop in share prices, chairman Mr Stevenson said: "Yes, our shares have gone down – all we can do managing the business is to go on doing it prudently and cautiously so that the share price goes up and I can assure you we are doing that."
The board was congratulated by one shareholder over its swift action when the false funding crisis rumours swept the City in March.
The full article contains 365 words and appears in Edinburgh Evening News newspaper.
