GERVEL Inc. is the majority stockholder of Republic Glass Holdings Corp. (REG). It owns some 459 million REG shares equivalent to 67.3 percent. The corporate name stands for Geronimo Velasco, the family patriarch who was energy minister during the administration of the late President Ferdinand Marcos.
In an information statement, which contains the agenda of its annual stockholders’ meeting scheduled for April 30, Republic Glass listed two other corporate stockholders as of March 27. Metropolitan Management Corp. (MMC), and Sysmart Corp., hold 47.885 million REG shares, or 7.02 percent, and 34.544 million REG shares, or 5.06 percent, respectively.
MMC is also a Velasco-owned company, while Sysmart is owned by businessman Henry Sy Sr., who together with his family, is the majority stockholder of SM Investments Corp.
The filing did not identify MMC as a Velasco-owned company. Due Diligencer attributed the company’s ownership to the Velascos based on the disclosures. The footnotes to the list of Republic Glass’ stockholders identified Geronimo F. Velasco Jr. as president and chief executive officer of Gervel, Republic Glass and Metropolitan Management.
As president and CEO and vice chairman of the nine-man board, Geronimo F. Velasco Jr. and his elder sister, Maria Paz V. Laperal, a director since 1990, are two of the five highest paid executives of Republic Glass. The three others are Mario T. Meneses Jr., corporate secretary; Florence Wong, vice president and chief finance officer; and Leopoldo C. Tan, compliance officer.
Republic Glass paid its five top executives as a group P14.5 million in 2014. Of the total, their salary amounted to P7.7 million and their bonuses, P6.8 million. The company’s “generosity” translates to a huge increase of P5.9 million, or 68.605 percent, in the group compensation, from P8.6 million.That was divided into salaries of P4.5 million and bonuses of P4.1 million, in 2013. This year, the company estimated the group’s salaries at P7.9 million and their bonuses at a low of P1.5 million.
In the same compensation filing, Republic Glass said it paid only seven of the nine members P10,000 per meeting attended plus bonuses. It paid them P3.8 million in 2013, which it increased by 86.842 percent to P7.1 million in 2014. The company said it did not pay Velasco Jr. and Mrs. Laperal, as members of the board because they received their compensation as executives.
First Philippine Holdings Corp. (FPHC) is the listed holding company of the Lopezes and the parent company of First Gen Corp. A public ownership report listed FPHC as owner of 2.425 billion FGen common shares, or 66.24 percent while the public stockholders hold 1.094 billion common shares, or 32.51 percent, making FGen the more public among listed companies.
Due Diligencer did a separate computation and came out with First Philippine Holdings owning more. The result also showed a dilution in the percentage of public ownership of 1.094 billion common shares.
To arrive at these results, Due Diligencer based the computation on the company’s entire capital stock. As of latest filing, FGen’s outstanding capital stock consisted of 5.129 billion voting shares, which, in turn, are divided into 3.661 billion common shares; and 1.469 billion voting preferred shares. Including 237.75 million non-voting preferred shares, FGen has outstanding capital stock of 5.367 billion of which 5.129 billion shares, or 95.57 percent, are classified as voting.
Additional computations showed the voting power of the Lopezes thru the family-controlled First Philippine Holdings. From 66.24 percent (see first paragraph under ownership profile), the ownership of First Philippine Holdings climbed to 73.52 percent, which is the percentage equivalent of its total holdings of 3.946 billion shares computed on outstanding capital stock of 5.367 billion shares including 1.469 billion voting preferred shares and 237.75 million non-voting preferred shares.
Of FGen’s voting stock of 5.129 billion shares of which 3.661 billion are common shares, First Philippine Holdings holds 3.894 billion, or 75.92 percent, again up from 66.24 percent. The public used to hold the equivalent of 32.51 percent of outstanding common shares which fell to 20.384 percent of expanded outstanding capital stock of 5.367 billion shares.
First Philippine Holdings also increases its ownership in FGen by buying common shares. Sometime in January, it bought 179.128 million FGen treasury shares P25.25 each. After four months, First Philippine Holdings Corp. is ahead by P4.75, or 18.812 percent.