STARTED young. Businessman Tony Tan Caktiong is the chairman, president and chief executive officer of the company he founded in 1978. Because he was then only 25 years old, did he see then Jollibee Foods Corp. (JFC) growing so fast that it is now the Philippines’s largest food chain?
Only he has the answer.
Over the years, Tan Caktiong has succeeded in charting the growth and diversifying the businesses of what was in the beginning a hamburger chain. His success has made him in demand either as independent or regular director of other companies. As of the latest count based on a posting at the website of the Philippine Stock Exchange, Tan Caktiong is a director of at least 56 other corporations. Of course, he owns many, if not all, of them.
Two of the companies that tapped his expertise for the board are Philippine Long Distance Telephone Co. (PLDT) of the First Pacific Group, as a regular director since 2008, and First Gen Corp. of the Lopezes as an independent director since 2005. For “extra-curricular” activities, he sits in the board of nonstock corporations, or charitable institutions.
Getting ‘poorer’. JFC has 1.052 billion outstanding shares. At a 30-day high of P175, the stock had a market value of P184.18 billion, which dropped 13.83 percent to P158.71 billion at a month’s low of P150.80. JFC had lost P25.47 billion!
With JFC share price’s decline, businessman Tony Tan Caktiong also became poorer by so much. Assuming that he and his family control 95 percent, equivalent to 1 billion Jollibee shares, then they were very rich as their holdings were worth P175 billion at P175 a share.
Then, JFC fell to P150.80, a fall that made Tan Caktiong and his family “poorer” by P24.20 billion, a huge amount which was too big to lose. Luckily, their loss was only in paper.
Compensation. As a regular member of the board of PLDT, Tan Caktiong, the businessman, belongs to the elite group of highly paid executives of the telecommunication company. He receives P200,000 fee for every meeting that he attends, which could easily amount to millions in one year.
In 2013, he shared from the “projected” of compensation of “all other executive officers, other officers and directors [excluding the chief executive officer and four most highly compensated executive officers]” such as salary, P238 million; bonus, P61 million; and other compensation, P283 million.
But the best pay day for Tan Caktiong and company came in 2010 when PLDT distributed the biggest extra compensation of P225 million for five highest paid executives, or P45 million each, and P1.087 billion for the “others” to which the JFC founder belongs. Assuming the P1.087 billion was divided among 60 executives and non-executive directors, then each of them got P18.12 million.
JFC’s pays and perks. In his own company, Tan Caktiong is one of the five most expensive executives. He and four others received P89.31 million in 2011; P79.98 million in 2012; and P88 million (estimate only) in 2013. The filing did not say if he got more than the others.
Then, Tan Caktiong had another source of personal income in another listed company. First Gen Corp. (FGen) may be less generous than PLDT, but like other Lopez-controlled companies, it pays well its executives. In fact, it paid “all officers and directors as a group” P405.46 million in 2012; and P345.59 million in 2011. Last year, it estimated the amount at P403.04 million.
In a footnote to the company’s compensation filing, FGen said that each member of its board receives “the standard per diem of P50,000 for attendance at each meeting.”