AEV preparing for leadership transition
THE leadership transition at Aboitiz Equity Ventures, Inc. ( AEV) is on course to be completed next year, with the holding firm establishing a committee composed of top management officials to guide the company’s board of directors.
Following the company’s shareholders’ meeting on Monday, AEV said in a disclosure to the stock exchange on Tuesday it approved the creation of an executive committee and its charter.
The newly formed committee, led by AEV President and CEO Erramon I. Aboitiz, will “assist the board of directors in overseeing the company’s dayto-day operations and strategic decision making, while ensuring compliance with the company’s governance policies.”
The move is part of the reorganization at AEV, which will see Mr. Aboitiz step down as president and chief executive officer of the holding firm next year. In 2014, the group moved to extend his term by three years to 2019.
Aboitiz Power Corp. President and Chief Operating Officer Antonio R. Moraza also deferred his retirement to 2019. He was supposed to retire in 2017.
“There hasn’t been a change on our retirement date of 2019. The transition is going good,” Mr. Aboitiz said in a briefing on Monday.
“You’ve seen some of the restructuring we have done. We are on course for 2019,” he added.
AEV is the Aboitiz family’s holding firm, which has interests in power generation and distribution through Aboitiz Power Corp., banking through Union Bank of the Philippines and City Savings Bank, property through Aboitiz Land, Inc., food through Pilmico Foods Corp. and infrastructure through Aboitiz InfraCapital Corp.
In the last couple of years, Mr. Aboitiz has overseen the group’s expansion to Southeast Asia and foray into infrastructure. He is also leading the future- proofing of the businesses through the adoption of a group-wide digital transformation strategy.
“As we move closer to a unified digital experience across the Aboitiz Group, we seek to transform our business through digital technology in order to enhance customer experience, improve our operational processes, and create new business models as an evolving and competitive organization,” Mr. Aboitiz said.
AEV reported a 3% jump in first-quarter consolidated net income to P4.8 billion on the strength of its banking business despite the weakness in its power subdsidiary, the biggest contributor to earnings.
Shares in AEV added five centavos or 0.08% to settle at P62.50 each on Tuesday.