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:

In no case has each Board’s total yearly compensation exceeded 10% of their respective company’s net income before income tax of the preceding year. In 2020, the directors received the following compensation:

During the February 16, 2021 meeting of the ESCG Committee, the Committee approved the increase in the per diem for every meeting attended as follows:

Other than the director’s per diem and monthly allowance, there are no other standard arrangements pursuant to which directors are compensated or to be compensated.  Officers are rewarded based on their individual performance and on their ability to execute their duties and responsibilities effectively.

 

The Board of Directors do not participate in discussions or deliberations involving his/her own remuneration.  Thus, all proposed changes in Board remuneration are approved by the shareholders and disclosed to the public in a timely manner through PSE and SEC disclosures and the Company’s Annual Report (SEC Form 17-A).  The Company believes that the information provided in the disclosures provide sufficient information on director and executive remuneration, while maintaining the privacy of the individuals concerned in compliance with applicable laws and regulations.

Other than the directors’ per diem and monthly allowance, there are no other standard arrangements pursuant to which directors are compensated or to be compensated.

 

The Board of Directors do not participate in discussions or deliberations involving his/her own remuneration.  Thus, all proposed changes in Board remuneration are approved by the shareholders and disclosed to the public in a timely manner through PSE and SEC disclosures and the Company’s Annual Report (SEC Form 17-A).  The Company believes that the information provided in the disclosures provide sufficient information on director and executive remuneration, while maintaining the privacy of the individuals concerned in compliance with applicable laws and regulations.