PSE corporate secretary Edgardo Guevarra said the PSE governors unanimously voted for Garcia’s reinstatement during their board meeting yesterday.
Guevarra said part of the compromise deal was for Garcia to go on terminal leave until the expiration of his term in March.
Garcia was sacked two weeks ago for publicly criticizing Metro Pacific chairman and fellow PSE director Manuel Pangilinan over the Fort Bonifacio relocation controversy.
Guevarra said the PSE governors will form a search committee to scout around for Garcia’s replacement.
For the time being, the oversight functions of the day-to-day functions of the PSE will be handled by a six-member management committee led by PSE chairman Felipe Yap, with Guevarra and PSE directors Cayetano Paderanga, Mario Camacho, Patricio Lim and Robert Coyuito Jr. as members.
Guevarra said the board meeting went smoothly, saying that the decision to reinstate Garcia was acceptable to everybody and "in the best interest of the Exchange."
Garcia said he was happy with the board decision, adding that although he is on leave, he would continue to do his part in pushing for improvement of the local capital market.
Garcia remained a non-broker member of the 15-member PSE board of governors, and would continue to function as president of the Securities Clearing Corporation of the Philippines, a 51-percent PSE subsidiary.
He clarified that once a new PSE president has been elected, he would resign and relinquish his post to his successor.
He described the board decision as "the most feasible and acceptable to all."
Garcia also said he has patched things up with Pangilinan and apologized to him for the fiasco.
Garcia scored Pangilinan last Sept. 17 for allegedly reneging on their original agreement that the Fort Bonifacio Development Corp. (FBDC) would provide a new site for the PSE by year 2004.
The row prompted Pangilinan to immediately quit as PSE director, while Garcia was booted out through a "no confidence vote" of the board.
Guevarra revealed that with the latest development, Pangilinan was reconsidering his resignation from the PSE board, and that the FBDC offer to provide a relocation site for the bourse would be renegotiated.
The PSE board has deferred its decision on the amended FBDC proposal that provided for shorter delivery period for both the lot and ownership of the property by PSE.
The issue is expected to be taken up in a special membership meeting to be convened by the board of governors after it has reached a decision on the FBDC bid.