‘Non-disclosable’ disclosure on Dennis Valdes

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Emeterio Sd. Perez

Emeterio Sd. Perez

IN fairness to Emilio de Quiroz, president of the Social Security System (SSS), he does not keep the fees he receives as nominee to the board of certain listed companies. Instead, he turns them over to the SSS treasury.

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De Quiroz is a member of the 11-person board of Belle Corp. and Union Bank of the Philippines, in which SSS owns 370.5 million shares, or 3.5 percent, and 148 million shares, or 14 percent, respectively.

Apparently, de Quiroz must feel he is already well-compensated as SSS head. In 2013, for instance, he was paid a total compensation of P7 million including a basic salary of P1.2 million. Among his other pay and perks were allowances of P3.41 million; bonus, incentives and benefits of P1.8 million; and other compensation, P21,398.

Pay and perks
SSS paid de Quiroz much more in 2013. In 2012, he was only No.9 on the list of the pension fund’s highest-paid executives. He overtook them all in 2013 when his basic salary remained at P1.2 million—the same as in 2012 which was much lower than that of Eddie Jara, an SSS senior vice president —but his perks increased.

In 2013, Jara received total compensation of P4.7 million, including salary of P2.8 million. De Quiroz, on the other hand, got P7.07 million, of which P1.2 million was his basic pay.

A series of computations showed the following results: Jara’s salary was 2.3 times de Quiroz’s P1.2 million, but the latter’s pay and perks of P5.87 million, excluding salary, dwarfed by P3.88 million the former’s P1.99 million.

Not for posting
Here is a disclosure that is not required for posting on the website of the Philippine Stock Exchange (PSE). The disclosure concerns Dennis Valdes, who happens to be an insider in one of the listed companies. The information about him was released by his wife.

Definitely, neither the PSE nor the Securities and Exchange Commission has any kind of regulatory power over Tessa Prieto.

An article that appeared in the Manila Bulletin on July 12 carried the title “Tessa Prieto shares secrets to a happy marriage.” Written by Karen Valeza, it contained what I would describe only as “non-disclosable disclosure.”

Nevertheless, I am sharing the story – or part of it only, anyway – with the public investors because Mr. Valdes is president and chief executive officer of Philweb Corp., the listed flagship of Roberto Ongpin, who is his uncle.

The marriage profile is good reading material, especially for couples who want to stay married for the rest of their earthly life.

Yes, Mrs. Valdes’ advice is good but the writer’s direct quote from her was even much better. “He has learned not to defy me,” she was quoted as having told the writer.

P110.4-M wealth
Eric Recto, chairman and chief executive officer of ISM Communications Corp., is, like Dennis Valdes, a nephew of Roberto Ongpin.

As an insider, Recto increased the number of ISM shares he indirectly owns to 77.3 million, or 10.8 percent, after buying 98,000 shares at P1.28 each on July 6; 151,000 shares at P1.28 each on July 7; and 28,000 shares at P1.28 on July 9.

At P1.35 per share, the stock’s closing price on Friday, the ISM shares Recto indirectly owns have a market value of P104.3 million. In addition, he also directly owns 5.2 million ISM shares which, at P1.35 each, are worth P7.07 million. All these holdings give him a paper wealth of P111.4 million.

Who owns what?
If you are among the public investors who own shares in ISM Communications Corp., you would not know your co-stockholders.

As of June 30, 2015, PCD Nominee Corp. held 704.2 million shares, or 98.3 percent, in ISM Communications Corp., of which Filipinos owned 564.2 million shares, and foreigners 140 million shares.

This listing tells the public that PCD Nominee is ISM’s biggest record but not beneficial stockholder. Then you decide to go below the top 100 stockholders’ list only to find from numbers 1 to 135 the names of trading participants or stockbrokers.

Does this mean 704.2 million ISM shares are all owned by stockbrokers? If so, then these stockholders have a combined paper wealth of P950 million when PCD-held shares are computed at P1.35 per share.

Of course, stockbrokers act only as middlemen who trade listed shares for their clients. If this is so, then even ISM insiders including Eric Recto must be trading their own shares in the company.

Public ownership
As you get more curious over the list of the stockholders of ISM Communications Corp., you shift your search for the PCD’s hidden owners in a filing called public ownership report.

Said POR tells you that ISM has two principal or substantial stockholders: Asset Holder PCC No. 2 Ltd. re: Ashmore Recovery Fund Inc., with 56.5 million shares or 7.89 percent, and EMDCD Ltd. with 29.5 million ISM shares, or 4.13 percent.

Monfortino Holdings Inc. is also listed as principal stockholder but is not credited with owning any ISM share; it held ISM shares only as record stockholder for Eric Recto as an indirect stockholder.

The irony in POR’s listing of stockholders is the public ownership of 420.7 million ISM shares, or 58.7 percent.

Really? As I used to ask in previous pieces on public ownership, if the public controls ISM, who then represents them on the company’s 11-man board?

esdperez@gmail.com.

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3 Comments

  1. Felimon A. Soria on

    The ones in charge of the SSS are getting substantial benefits, enjoying the hard earned money of the working class while they get scraps. What an irony.

  2. Ang hayup at walang hiyang dequiroz na yan pagdating sa pension increase ng mga pensioner ayaw nila ang daming kos-kos balungos ng mga alipores ni abnoy, Eh pera ng mga mangagawa ang nilalaklak nila biro mga allowance at suweldo kaya siguro takot magbigay ng incease dahil ayaw mabawasan ang tinatangap nila, dalhin sa plasa ang mga yan at ibitin ng patiwarik simbolo ng tuwid na daan kuno.