EXECUTIVE COMPENSATION. In 2013, Metropolitan Bank and Trust Co. paid its executives P419.9 million, or P44.2 million more than the bank’s earlier estimate of P375.6 million.
In the same year, Metrobank’s elite five, led by George S.K. Ty, the 82-year-old founder of the bank, received P117.6 million, or P19.5 million more than Metrobank’s own estimate of P98.1 million.
Ty was chairman of the board from 1975 to 2006, and now remains chairman not only of the bank but of the Metrobank group.
Besides Ty the father, the compensation filing also listed the following four other highest-paid executives: Arthur Ty the son, Metrobank chairman; Fabian Dee, director and president; and Fernando Antonio A. Tansingco and Joshua E. Naing, senior executive vice presidents.
This year, the five-man group’s pay and perks are estimated to amount to P124.4 million, up by 5.7 percent from P117.6 million in 2013.
Metrobank paid Ty the father and four others P108.7 million in 2012 when Tansingco and Vicente R. Cuna Jr. were executive vice presidents of Metrobank. Naing was not yet among the five highest paid executives of the bank.
Here is how Metrobank divided the annual total executive compensation between the top five executives and “all other officers and directors as a group”:
2012: of the P387.2 million compensation package, P108.7 million or 28 percent went to the top five and the “others” received P312.1 million or 71.9 percent;
2013: of the P419.9 million compensation package, P117.6 million or 28 percent went to the top five while P302.2 million or 72 percent went to the “others”.
2014: Metrobank projected its executives’ compensation at P436.5 million, with P124.4 million or 28.5 percent going to the top five and P312.1 million or 71.5 percent going to the “others.”
Adding all these numbers up, over a three-year period ending this year, Metrobank spent P1.2 billion in executive compensation alone.
Metrobank’s financial performance results, however, would justify these executive compensations. In the last three fiscal years, Metrobank reported consolidated net profit of P54.6 billion. Its net income increased 34.8 percent to P24.2 billion in 2013 from P17.9 billion in 2012 and from P12.5 billion in 2011.
As parent company, Metrobank recorded net profit of P16.7 billion in 2013, up 50 percent from P11.1 billion in 2012 which, in turn was up 40.9 percent from P7.9 billion in 2011.
But since this piece is about pay and perks, here are the numbers on consolidated “compensation and fringe benefits” in the last three years: P15.6 billion in 2013, up 8.5 percent from P14.4 billion in 2012 which, in turn, was 8.2 percent higher than the P13.3 billion recorded in 2011.
As parent, Metrobank’s “compensation and fringe benefits” amounted to P11 billion in 2013; P10.4 billion in 2012; and P9.3 billion in 2011.
Being the majority stockholders of Metrobank, the Tys are not only very rich but very, very rich, even if on paper only.
As direct owner of 11.9 million shares, Ty the father is already almost a billionaire. At P83.30 per share, which was the last trading price of Metrobank shares on Monday, his holdings were worth P991.8 million.
Arthur Ty the son, who is chairman of the bank, is also rich but “poorer” than his father. His direct holdings of 9 million Metrobank shares had a market value of P753.6 million.
Of course, said paper wealth was computed based only on direct holdings. Ty the father and Ty the son also own 26 percent and 55.9 percent, respectively, of the outstanding capital of Philippine Securities Corp. (PSC).
PSC, in turn, holds 139.6 million Metrobank shares or 5 percent, worth P11.6 billion at P83.30 per share. Mary V. Ty owns 15.6 percent of PSC.
These ownership percentages translate to the son indirectly owning 78 million Metrobank shares and the father 36.3 million Metrobank shares. At P83.30 per share, their holdings were worth P6.5 billion and P3 billion, respectively.
With his direct and indirect holdings, Ty the son is Metrobank’s single biggest and richest individual stockholder with a paper wealth of P7.2 billion. Ty the father had a paper wealth of P4 billion. Mary, on the other hand, owns 21.8 million Metrobank shares worth P1.8 billion.