The Board Environmental, Social and Corporate Governance Committee (ESCG) ensure that the remuneration for directors and key executives is consistent with the Group’s culture, strategy, and business policies. Remuneration rates are also maintained at a level sufficient to attract and retain directors and officers who are needed to successfully run their respective companies. The Group engages the services of independent remuneration consultants to determine the compensation, as well as any annual salary increases, for directors, officers, and team members.
Guided by the Aboitiz Compensation Philosophy, factors such as individual and organizational performance, and inflation, among others, are taken into account to ensure that the compensation structure will attract, retain, and engage the best talents to contribute to the success of the business. Each year, the results of the study are presented and discussed during the first meeting of the AEV ESCG Committee.
During its February 18, 2019 meeting, the Corporate Governance Committee approved the increase the directors’ monthly allowance from PHP180,000 to PHP200,000 for the Chairman, and from PHP120,000 to PHP150,000 for other directors. The committee also approved the increase in the per diem for every meeting attended as follows: