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  "docSlug": "f3f23ae4a447",
  "documentTitle": "Bank of East Asia, Limited (0023.HK)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2016-02-04 00:00:00",
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  "pageNumber": 15,
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  "notes": "The slide uses a strong accusatory tone, framing the management team as 'entrenched' and the share placements as 'defensive' and 'dilutive'.",
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      "text": "These chronic performance shortcomings are attributable to the long-term mismanagement of BEA by its entrenched executive management team",
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      "text": "On top of the multiple long-running performance shortcomings, shareholders of BEA have been heavily and unjustifiably diluted. The BEA board has approved a total of five selective and highly dilutive share placements to the “Strategic” Shareholders since 2007, resulting in a 36.8% increase in share count over the past eight years. No other Hong Kong listed banks have raised capital during this period by issuing shares in this manner. BEA shareholders have suffered substantial EPS dilution from these share placements to the “Strategic” Shareholders without it being apparent that any of the claimed commercial benefits have resulted. These “strategic” agreements are defensive in nature and have apparently yielded little or no commercial benefit for BEA or its shareholders. Meanwhile BEA's senior executives have been generously compensated: Over the period from 2007 to 2014, the top five executive management team members at BEA (by pay level) were paid an average of HK$79m per year (representing an average of 1.81% of reported annual net profit). This compares unfavourably with the Leading HK Banks - HSB (HK$46m or 0.28% of reported net profit) and BOC HK (HK$40m or 0.23% of reported net profit)",
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      "text": "share count increase: 36.8%",
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      "text": "Source: Company disclosures",
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      "text": "These chronic performance shortcomings are attributable to the long-term mismanagement of BEA by its entrenched executive management team",
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