National Investment and Trust Co. Must Merge, Chairman Says; Board to Review Compensation

National Investment and Trust Co. (國票金控) Chairman Chang Chao-shun declared that the financial holding company must merge because of its small size, stating it will either acquire another entity or be acquired itself. Chang, speaking at a legislative hearing on public asset consolidation, stressed the need to "make it look beautiful" before a merger, contrasting it with recent instances where rumors of acquisition caused the company's stock to fall.

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This company must be merged, either by being acquired or by acquiring others.

Chang noted that public shareholders recently secured a majority of eight seats on the board through proxy solicitations and strategic alliances. He argued that it is unfair to immediately apply public enterprise standards to the company, which previously operated under private management. He announced that the board will review executive compensation, advocating for a system that links pay to performance, while acknowledging that public sector salaries are generally too low.

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We need to make it look beautiful before merging.

He also highlighted that National Investment and Trust Co. has a capital of NT$33.6 billion and net worth of NT$45 billion, with NT$6 billion invested in online banking. Despite its limited liquid funds, the company achieved a strong return on equity of 11.5% in the first half of the year, which Chang considers high among public banks. He aims to boost morale and improve governance to make the company an attractive prospect for potential suitors, hoping that acquisition rumors will instead lead to stock price increases.

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Some say we are a 'rotten apple,' and when we are rumored to be acquired, our stock falls for three consecutive days.

Chang expressed his commitment to reducing internal friction, enhancing corporate governance, and improving performance. He acknowledged that the company has been labeled a "rotten apple" by some, leading to stock declines when merger talks surface. He requested time to implement these improvements, aiming to position the company favorably for future consolidation.

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When we are rumored to be acquired, our stock can rise for seven consecutive days.