FPHC’s P1-B, 3-year executive compensation

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Emeterio Sd. Perez

Emeterio Sd. Perez

AS chairman emeritus of First Philippine Holdings Corp. (FPHC) since May 31, 2010, Oscar Lopez is also the company’s chief strategic officer. Apparently he has not retired and is not about to retire from the business even after serving the family-controlled FPHC for 24 years as chairman and chief executive officer from 1986 to 2010

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Mr. Lopez not only heads one of the family-controlled listed companies, he is also one of FPHC’s five highest-paid executives, along with his sons Federico R. Lopez, chairman and chief executive officer, and Benjamin R. Lopez, a vice president; as well as Elpidio L. Ibanez, president and chief operating officer and Arthur A. De Guia, managing director.

Here is an example of the generosity of the Lopezes: In 2013, FPHC paid the three Lopezes and two other executives as a group P122 million in salaries, or an average of P24.4 million each. In addition, it granted each of them a bonus of P22.6 million or P113 million for the group.

P1B for 3 years

From 2013 until the end of 2015, FPHC said its executive compensation would top P1 billion, or a total of P1.021 billion. The three-year total covers P690.5 million for the top five; P217 million for “all other officers as a group unnamed”; and P113.3 million, or P7.5 million each for 15 members of the board.

How FPHC performed financially from 2012 to 2014 suggests it could afford to be generous to its management team, although it may be less generous to its rank-and-file workers.

In its audited financial statements, First Philippine Holdings reported consolidated net income of P16.46 billion in 2012, resulting from consolidated revenues of P97.46 billion. The following year, the company’s net profit dropped 60 percent to P6.55 billion on revenues of P93 billion.

Last year, FPHC recovered when its net income more than doubled to P14.6 billion on revenues of P99.3 billion, but failed to beat its P16.46 billion profit in 2012.

Insider trades

On April 7, A. Juan Miguel R. Montinola, chief finance officer of Far Eastern University (FEU), bought 490 FEU shares at P995 each. The acquisition increased the number of FEU shares Montinola owns to 76,144, or 0.46 percent, of which he directly holds 75,144 shares. At P995 per share, his FEU holdings gave him a paper wealth of P75.76 million. FEU hit a 52-week high of P1,700 and a 52-week low of P830.

As one of four independent directors of Philweb Corp., Gregorio Ma. Araneta 3rd originally owned 100 Philweb shares. On March 9, he increased his holdings in the company by paying P178 million to buy 13 million Philweb shares at P13.66 per share. The acquisition increased Araneta’s Philweb holdings to 13.04 million shares, or 0.91 percent. Araneta reported in a filing that he bought said block thru Gregorio Araneta Inc.

Majority stockholder

Businessman Roberto V. Ongpin, chairman of the board of Philweb, owns 767.58 million Philweb shares, or 53.6 percent, making him the company’s majority stockholder. Of his total holdings, he directly owns 21.84 million shares.

Among the  corporate vehicles that hold Philweb shares for Mr. Ongpin are Azurestar Corp., 86.2 million, or 6 percent; Dominion Equities Inc., 90.8 million, or 6.3 percent; Compact Holdings Inc., 95.57 million, or 6.67 percent; and Deltaventure Resources Inc., 90 million Philweb shares, or 6.3 percent.

RVO’s paper wealth

Here is a computation for corrupt politicians who may be interested in finding out RVO’s paper wealth, or who may hate him for earning his wealth the hard way, unlike them. At Philweb’s closing price of P14.56 per share on Monday, Mr. Ongpin’s paper wealth in Philweb amounted to P11.176 billion (767.579 million x P14.56).

The bad news for Mr. Ongpin’s haters is that Philweb has been making good financially such that it is able to regularly declare dividends. On Feb. 16, 2015, the company’s P0.15-per-share dividend payment entitled Mr. Ongpin to receive P115 million. To follow on May 21 is another P0.15-per share dividend payment.

By the way, Mr. Ongpin won’t receive all these dividends due his entire holdings.

Rather, he will receive only P3.3 million for the 21.84 million Philweb shares that he directly owns. The dividends due his indirect holdings, totaling 745.7 million shares, would have to be declared by the corporate vehicles that hold them for him.

esdperez@gmail.com.

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