AYALA Corp. and Philippine Long Distance Telephone Co. (PLDT) are two of the biggest public companies listed on the Philippine Stock Exchange. The numbers show how big they really are if they are judged by the generosity they extend to their executives, who may also be top managers or members of the board of other companies.
From time to time as data becomes available, Due Diligencer will report the compensation that listed companies pay their key officers to inform the public about who should be held responsible or blamed for the increase or decline in the value of their investment.
5 highest paid executives
PLDT listed the following as its highest paid executives: Napoleon Nazareno, director, president and CEO; Ernesto Alberto, EVP; Annabelle Chua, SVP; Isaias Fermin, EVP; and Ma. Lourdes Rausa-Chan, director, SVP. As a group, their annual compensation increased by 14.286 percent to P152 million in 2014 from P133 million in 2013.
The company estimated the top five executives’ pays and perks for 2014 at only P135 million, but in showing its generosity, raised the actual amount by P17 million, or 12.593 percent, to P152 million. Translated into individual gross compensation, each of the PLDT elite five got P30.4 million in 2014, or P2.533 million a month.
In a footnote to the compensation filing, PLDT said Nazareno “receives compensation from Smart but not from PLDT.” Smart is a PLDT unit.
(By the way, the average pay is not the same for all of them because, for sure, somebody must have received more in salary, bonuses and other compensation than the others.)
PLDT, however, has been very generous to the members of its 13-man board, including the independent directors by paying them P250,000 per board meeting attended and an additional P125,000 per board committee meeting attended.
Incidentally, PLDT did not include Manuel V. Pangilinan, chairman of the board, among its most highly compensated executives.
Less generous to ‘others’
Going by the list PLDT posted on the website of the Philippine Stock Exchange, the company had 17 other key officers among its well-paid executives. In 2014, PLDT paid them P559 million, divided into salary, P257 million; bonuses, P65 million; and other compensation, P237 million.
While PLDT was more generous to the top five, it reduced the amount it paid “all other officers” as a group by P77 million or 12.107 percent from P636 million in 2013. The company, though, raised the group’s salary by P10 million or 4.049 percent, to P257 million from P247 million and their bonuses by P3 million or 4.839 percent, to P65 million from P62 million. To compensate for its “loss,” it cut their “other compensation” by P90 million or 27.523 percent to P237 million in 2014 from P327 million in 2013.
In its filing, PLDT said the compensation of its key executives consists of basic monthly salary; longevity pay, mid-year bonus, 13th month and Christmas bonus. It also explained that “other compensation” is computed “based on an annual incentive system that encourages and rewards both the individual and group team performance, and is tied to the achievement of corporate/unit/customer satisfaction objectives.”
Ayala Corp. listed not five but six “most highly compensated executive officers. These are Jaime Augusto Zobel de Ayala, chairman and CEO and his younger brother Fernando Zobel de Ayala, president and chief operating officer; John Eric T. Francia, managing director; Delfin C. Gonzalez Jr., managing director and chief finance officer; Solomon M. Hermosura, managing director, general counsel, corporate secretary and compliance officer; and John Philip S. Orbeta, managing director.
As a group, AC paid them P390 million, divided into salary, P215 million, and bonus, P175 million in 2014, up P60 million or 18.182 percent from 2013, when they received P330 million. The comparative year’s total was divided into salary, P199 million and bonuses, P131 million.
The Zobel-owned holding company also included the pays and perks of the six top executives in the amounts it paid “all other officers as a group unnamed,” which in an explanatory footnote are “managers and up (including all above named officers).”
Apparently, the footnote means that P390 million or 50.129 percent of the total compensation for “all other officers,” amounting to P778 million in 2014 and P330 million or 51.969 percent of P635 million in 2013, went to the Zobel brothers and four other top executives.