HOW generous is GMA Network Inc., which owns and operates, among others, GMA 7 or Channel 7 to TV viewers, to the members of its management team including the nine members of its board of directors?
Based on its compensation filing, we may conclude that GMA 7 is very generous. In fact, it may even be more generous to board directors and executive committee members who may also be connected with other corporations that may not necessarily be public.
Due Diligencer, however, would not know if such generosity extends to GMA7’s common workers.
Citing the pertinent provision of its charter, GMA 7 said the pays and perks should be “not more than 2.5 percent of net income after tax of the preceding year.” In effect, in not expressing the amounts in peso term, it was telling the members of its board that it would compute their pay based on their performance and the company’s profitability.
Let us go by the numbers to show how rich GMA 7’s “Kapuso” directors and executive committee members are because of the network’s generous compensation package. Here are some computations to determine their wealth:
GMA Network reported net profits of P1.621 billion in 2012; P1.675 billion in 2013; and P1.01 billion in 2014. That’s a total of P4.306 billion in the last three years, of which 2.5 percent – one percent for directors and 1.5 percent for executive committee members – amounts to P107.65 million. Of the P107.65 million given to the top executives in 2012 to 2014, P43.06 million went to the nine-person board, or P1.595 million each a year, and P64.59 million, or P7.211 million each a year, to the three-man executive committee.
Unlike that of the board and the executive committee, the compensation of the members of the management team of GMA 7 is reported as actual pays and perks, which consist of basic salaries and bonuses.
A compensation filing showed the total annual compensation of GMA 7’s five executives: P141.716 million in 2014; P144.488 million in 2013; and P132.951 million in 2012. This year, it estimated the group’s pays and perks at P147.385 million.
GMA’s highest paid executives are Felipe L. Gozon, chairman and chief executive officer; Gilberto R. Duavit Jr., president and chief operating officer; Felipe S. Yalong, senior vice president, corporate services group; Marissa L. Flores, VP, news and public affairs; and Jessica A. Soho, first vice president, news program.
“Aggregate compensation paid to all officers and directors as a group”, who are not identified, amounted to P199.486 million in 2014; P233.917 million in 2013; and P216.862 million in 2012. By the end of 2015, GMA 7 said it would have paid the group P207.466 million.
Vis-à-vis net profits
If the remuneration of GMA 7’s board and the executive committee is 2.5 percent of net income, let us see the percentage equivalent of the compensation received by the management team vis-à-vis net profits in the last three years.
Since GMA 7’s top five executives received P141.716 in 2014, this was equivalent to 14.038 percent of P1.01 billion net profit; P144.488 million in 2013 or 8.626 percent of P1.675 billion net profit; and P132.951 million in 2012 or 8.203 percent of 1.70 billion net profit.
To summarize all the amounts of compensation, Due Diligencer added GMA 7’s net profits from 2012 to 2014 and came up with a total of P4.305 billion. When ranged against the sum, the top five executives’ combined salaries and bonuses of P419.155 million in three years equal 9.736 percent of the total three-year profit. Those of all other executives and directors amounted to P650.265 million, which represents 15.104 percent.
BUSINESSMAN John Gokongwei may not know that a vendor of clothes hangers who deals with Robinsons-Nuvali in Sta. Rosa City has been dropping the store’s name in a public place such as inside a public utility vehicle. I personally witnessed how this middleman, who is perhaps not yet 30 years old, kept mentioning Robinsons store in a boastful tone as if he personally knew the family patriarch, Lance and Robina, and the rest of the Gokongwei clan. He was talking to his boss through his mobile phone.
The guy was irritating the other passengers because he was talking at the top of his voice while he was almost leaning on the breast of the lady passenger sitting beside him. As I could no longer tolerate his loud voice, I covered my left ear only to hear him say over the phone there was this fellow passenger whom he could not stomach.
“Kaya ko na ‘to boss,” (I can handle this), he told his boss.
The following day, I went to Robinsons-Nuvali to check the salesman’s product. True enough, there were clothes hangers displayed inside the store. If those were his merchandize, then I would advise my wife not to patronize them. After all, there are other brands that she could buy somewhere else but not at Robinsons. No. we are not boycotting the store itself but only the hangers that are being sold there.