Is Filsyn rehab still possible?


Filsyn Corp. reported in its annual report for 2014 that “the board of directors only received reasonable per diem.”

Really? To the public, this kind of compensation filing in which a listed company disclosed “reasonable per diem” as compensation is too vague to be appreciated.

Yet, in the same filing, Filsyn fully disclosed the amount of audit fee it paid Sycip, Gorres & Velayo. If the company paid SGV P910,000 for auditing its financial performance in 2014, why could it not tell the public the exact compensation of the 12 members of its board led by lawyer Florentino M. Herrera 3rd, chairman and president?

In a quarterly financial filing, Filsyn reported a deficit of P1.74 billion as of March 31, 2015.

Trading in Filsyn shares remains suspended. They were last traded on May 29, 2000 when the price per share closed at P3.

After more than 13 years that Filsyn has been in “hibernation,” it is time for the public, who own 66.558 million shares, or 32.27 percent, to be informed if there is still hope of rehabilitating the company.

Trans-Pacific Holding Co. and Far Eastern Investment Holding Ltd. hold a combined 52.68 percent of Filsyn’s outstanding shares.

The Sys’ paper wealth in SMIC
As of March 31, 2015, SM Investments Corp. owned 334.725 million shares in China Banking Corp. (CBC), of which it directly held 286.859 million and indirectly owned 37.866 million shares held by its subsidiary, SM Prime Holdings Inc.

The number of CBC shares SMIC owned increased by 26.778 million shares due to an 8 percent stock dividend that the bank distributed on Sept. 9 to shareholders.

As a result, SMIC reported in an ownership filing posted on the website of the Philippine Stock Exchange (PSE) that its holding in China Bank totaled 361.503 million as of Sept. 30.

SMIC’s holding in China Bank as of cutoff date included the 8 percent stock dividend (equivalent to 23.749 million CBC shares) due its directly owned 296.859 million CBC shares and 8 percent stock dividend (equivalent to 3.029 million CBC shares) due its indirectly owned 37.866 million CBC shares.

SMIC is the listed flagship of businessman Henry Sy Sr. and his family. At the stock’s 30-day high of P43, the Sys had paper wealth of P15.545 billion from this company but they were made poorer by P2 per share, or P723.006 million when its price dropped to P41 per share.

BHI’s well paid execs
In a financial filing, Boulevard Holdings Inc. (BHI) said its loss totaled P826,054 in fiscal year ended May 31, 2013; P13.801 million in 2014; and P40.504 million in 2015. These losses resulted in P0.0004 per share loss in 2013; P0.0012 in 2014; and P0.0028 in 2015.

The numbers told the story of a company heavily losing each year. Despite all these depressing financials, BHI has been very generous to its top five executive officers and members of its eight-man board. In 2014, it paid them a total of P2.676 million – divided into: salaries P1.296 million; bonuses P675,000; additional pay P704,667, which was defined as “other compensation” in a filing.

Of the compensation of P2.676 million in 2014, P404,000 represented bonuses for the five, while P550,667 went to the members of BHI’s board, chaired by businessman Jose Marcel Panlilio, who also heads the list of five most highly compensated executives.

The following year, BHI even proved more generous when it increased the bonus of its top five executives to P38,000 but maintained their salary at P1.296 million. It paid its eight directors P780,000 but reduced the “other compensation” to P131,000 for the top five and P339,000 for the eight directors.

Consistent generosity
While BHI continued to pay well its executives and members of the board, the company’s stock price has plunged to a 52-week low of P0.052, from its par value of P0.10. On Friday, it opened trading at P0.06 and closed at P0.057.

In the financial year to 2016, which began on June 1, 2015, BHI is getting more charitable despite its deficit. The company has projected that by May 31, 2016, the compensation of Panlilio and four other executives will reach a combined P4.307 million, consisting of P1.45 million in salaries; P1.907 million in bonuses; and P950,000 in “other compensation.”

BHI said of the total bonus of P1.907 million in 2016, its directors would be paid P1.3 million and its top five executives P607,000. Of P950,000 in “other compensation,” the top five would receive P250,000 and the directors P700,000.

Aside from Panlilio, who is chairman of the board and company president, BHI’s four other highest paid executives are Lorenzo R. Tanada 3rd, vice chairman; Victor V. Benavidez, treasurer; Lyra Gracia Yap Lipae-Fabella, corporate secretary and alternate corporate information officer; and Mauro B. Badiola, vice president for finance and chief corporate information officer.


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