Tan brothers, bank presidents, competitors

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Emeterio Sd. Perez

Emeterio Sd. Perez

HOW would you feel if you were as well paid as the two bank presidents in this piece?

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You better ask them.

A few years ago, when I wrote about the huge compensation of the top executives of a conglomerate, I received a rejoinder from one of them who apparently wrote for the group. He explained in a few words: “We work hard for it.”

How hard? I asked and got this response that the top men of the conglomerate required—perhaps, still require—their subordinate executives to have their phone open 24 hours a day even during Saturdays, Sundays and holidays. In short, they should be ready anytime to attend urgent meetings.

* * *

RIZAL Commercial Banking Corp. paid in 2013 Lorenzo V. Tan, president, and four other top executives as a group P40.139 million in “aggregate compensation,” an amount that represents only 17.653 percent of their bonuses totaling P227.382 million.

Perhaps the two presidents who are the subject of today’s Due Diligencer also work the whole day, seven days a week. No days off because they are well compensated anyway—in millions of pesos.

In 2012, RCBC paid the group salaries of P31.691 million and bonuses of P152.449 million. This year, in the bank’s estimate, Tan and company would be paid P42.238 million in “aggregate compensation” and P100.752 million in bonuses.

Aside from Tan, the four other executives were Michael O. De Jesus, first senior vice president in 2012 and executive vice president in 2014; Rommel S. Latinazo, first senior vice president in 2012; Redentor C. Bancod, senior executive vice president in 2012, 2013 and 2014; John Thomas G. Deveras, executive vice president in 2012, 2013 and 2014; Jose Emmanuel U. Hilado, senior executive vice president in 2013 and 2014; and Ismael R. Sandig, senior executive vice president in 2013.

In the same filing, RCBC reported that it paid its “officers and directors as a group unnamed” P1.039 billion in “aggregate compensation” aside from bonuses of P555.426 million.

The same report showed that RCBC’s “other officers and directors” got more than a billion pesos, or P1.483 billion in 2012, including bonuses of P502.783 million.

The bank said the group will receive P1.127 billion in salaries and P406.156 million in bonuses.

* * *

BANCO de Oro Unibank Inc. raised by 13.07 percent to P90.90 million in 2013, from P83.93 million in 2012, the salaries of Nestor V. Tan, Banco de Oro Unibank, president and elder brother of Lorenzo V. Tan, and four senior executive vice presidents.

This year, the bank said that based on estimates, the group’s salaries could amount to P104.39 million, up 10 percent from the previous year.

In a PSE posting, the bank said the four SEVPs are Walter C. Wassmer, Jaime C. Yu, Eduardo V. Francisco and Rolando C. Tanchanco.

BDO said it also increased the group’s bonuses to P47.49 million in 2013 from P42.14 million in 2012. This year, the additional pay and perks of the bank’s five most highly paid executives would amount to P52.24 million.

The other officers who are senior vice presidents and directors got salaries of P503.45 million and P469.14 million in 2013 and 2012, and bonuses of P270.72 million and P248.64 million in the last two years.

In a footnote to the compensation filing, BDO said “the total compensation of directors shall not exceed 10 percent of the net income before tax . . . during the preceding year.”

Financials. Here are the numbers that show how the two banks with the Tan brothers as presidents performed in the last three years. They did well, as the financial reports audited by the same external auditing firm, Punongbayan & Araullo, show.

Rizal Commercial Banking Corp. and its units reported consolidated profit before tax of P6.593 billion in 2013; P6.701 billion in 2012; and P6.002 billion in 2011.

As a result, the bank and its units registered consolidated net profit of P5.334 billion in 2013, down from P5.956 billion in 2012. In 2011, the group’s net income totaled P5.087 billion.

Banco de Oro Unibank Inc., on the other hand, had consolidated profit before tax of P24.75 billion in 2013; P16.113 billion in 2012; and P12.583 billion in 2011. Its consolidated net profit increased to P22.646 billion in P2013 from P14.542 billion in 2012. In 2011, it registered net profit of P10.844 billion.

With all these billion-peso profits that the two banks have been recording in the last three years, are their boards as generous to the stockholders, who include of course the controlling family owners, as they are and have been to their executives?

esdperez@gmail.com

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