Top execs eyed for PSE’s non-broker seats

The country’s wealthiest and most powerful businessmen are being considered as possible nominees in the upcoming elections for the non-broker seats of the Philippine Stock Exchange (PSE) board of directors, PSE chairperson Vivian Yuchengco said.

She said while no talks have yet been held with any of the potential candidates, such a selection would not only bring more prestige to the PSE but, hopefully, instill a clearer business direction for the PSE as a demutualized entity priming itself for public offering.

In a way, she added, these could also help lift investor sentiment toward equities as the new directors would be representing the blue-chip companies, bringing their knowledge and business expertise to the PSE board.

Among the names floated as possible candidates include John Gokongwei Jr. of the JG Summit group, Jaime Augusto Zobel de Ayala of Ayala Corp., Eduardo Cojuangco Jr. of San Miguel Corp., Alfonso Yuchengco of the House of Investments, Teresita Sy-Coson of the SM Group, George S.K. Ty of Metrobank, and beer and tobacco tycoon Dr. Lucio Tan.

The PSE members hold their annual election for the 15-man board of directors in March, with the independent, or non-broker directors making up the majority as mandated by law.

In the present board, the eigh non-brokers are led by PSE president Ernest Leung (who still has a one-year term of office remaining). The rest are made up of equally distinguished personalities in business and academe: Benpres Holdings’s Eugenio Lopez III, Aboitiz Equity’s Enrique Aboitiz Jr., banker Peter Favila, former Petron president Monico Jacob, former Customs Commissioner Tomas Apacible, Fr. Joaquin Bernas, and former Socioeconomic Planning Secretary Cayetano Paderangan Jr.

The remaining seven seats are held by brokers, who contest the positions through the ballot, unlike the non-brokers who are nominated and trimmed to an even eight – assuring their election – by the PSE’s Nominations and Elections Committee (Nomelec).

Yuchengco also supported the practise of limiting the non-brokers for the eight available slates since it would make it easier to recruit them to serve the PSE.

"How else can you convince them to run and face the prospects of losing in the end?" she said.

Yuchengco added that in next year’s poll, she would be seeking re-election but added willingness to defer another term as chairman.

"Yes, I will run but only to protect the president," she said, referring to Leung.