For record 2012 results: Listed firms’ execs to get higher salaries, bonuses
MANILA, Philippines - Numerous listed companies will reward their executives with heftier salaries and bonuses this year amid record profits in 2012.
“My personal view is that many publicly-listed companies... are rewarding their executives for their 2012 performance which was a banner year,†Ricardo N. Jacinto, president and CEO of the Institute of Corporate Directors (ICD), said in an E-mail.
For instance, the CEO and top four officials of the Gokongwei Group’s Robinsons Land Corp. and Universal Robina Corp. will get a combined seven and 11-percent salary increase to P27.7 million and P46.53 million, respectively.
Units of the Ayala conglomerate will be seeking shareholders’ approval to beef up the salary of top executives of Manila Water Co. Inc. (7.8 percent to P80.1 million), Integrated Micro-Electronics Inc. (7.12 percent to P66.44 million), Globe Telecom Inc. (eight percent to P81 million), Ayala Land Inc. (seven percent to P108.3 million) and Ayala Corp. (eight percent to P198.77 million).
Mall and banking tycoon Henry Sy’s SM Investments Corp. will grow its executive pay by 14.6 percent to P47 million, BDO Unibank Inc. by 10 percent to P92.32 million, SM Prime Holdings Inc. by 7.14 percent to P30 million and China Banking Corp. by five percent to P41.25 million.
Gaming solutions provider Philweb Corp. and property firm Alphaland Corp. of former trade minister Roberto V. Ongpin will inflate executive pay by 50 percent and 15 percent to P56.86 million and P23.29 million, respectively.
“I think stockholders will not have a problem with rewarding their executives for the excellent 2012 performance. This should hold in the future with the good business conditions that are expected to continue,†Jacinto said.
Listed firms differ in determining executive pay, with some based on corporate income and some from officials’ performance.
“In no case shall the total yearly compensation of directors exceed one percent of the net income before income tax of the corporation during the preceding year,†Manila Water and Ayala Corp. said.
Phinma Corp., whose top executives will receive a combined two-percent increase in salary to P10.6 million this year, said “directors receive allowances, per diem and bonus based on a percentage of the net income of the company for each calendar year.
For global port operator International Container Terminal Services Inc., its focus is “on empowering, motivating and energizing its employees’ talents.â€
However, when combined with lower bonuses and other incentives, Ayala Land (-12 percent to P168.3 million), Ayala Corp. (-28 percent to P285.58 million), Chinabank (-3.54 percent to P76.4 million), Metropolitan Bank & Trust Co. (-9.77 percent to P98.11 million) and Phinma (-15.4 percent to P23.17 million) will be reporting lower pay for CEO and top four executives.
ICD, for its part, is working together with the Securities and Exchange Commission for the ASEAN Corporate Governance Scorecard, which is a basis for rating and benchmarking companies on their good governance practices.
“ICD hopes to have at least 20 Philippine publicly-listed companies in the ASEAN Top 50 by 2015,†Jacinto said.
Jacinto said executive pay should be in line with specific and medium-term corporate measures that will rate the management’s performance.
“Basing executive remuneration on management’s success in attaining these measures, which are indicative of a sustainable strategy, is the right approach to take,†Jacinto said.
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