Individualized executive compensation

BDO Unibank Inc. has authorized capital stock (ACS) of 6.5 billion shares divided into 5.5 billion common shares and one billion voting preferred shares.

Both classes of shares have par value of P10 per share, according to the bank’s 2018 general information sheet (GIS).

Of the bank’s ACS, 12,237 Filipinos subscribed and paid for 3.546 billion shares, two of them owners of 515 million preferred shares.

Of BDO’s 5.5 billion authorized common shares, 348 foreigners subscribed to 1.342 billion common shares or 27.44 percent.

Thus, of BDO’s authorized issuances, 12,585 Filipinos and foreigners subscribed to and paid for 4.888 billion shares or P48.878 billion at par value of P10 per share.

At closing price of P115 per common share on Sept. 17, 2018, BDO’s 4.373 billion listed common shares had market value of P502.871 billion (4,372,795,064 x P115 = P502,871,432,360).

Of BDO’s 4.888 billion paidup common shares, SM Investments Corp. (SMIC) owns 1.751 billion common shares.

The other top stockholders who hold BDO common shares are the Hong Kong and Shanghai Banking Corp., 836,215 million BDO common shares or 17.11 percent; Deutsche Bank Manila, 317.335 million BDO common shares or 6.49 percent; Multi-Realty Development Corp., 291.53 million BDO common shares or 5.97 percent; and Sybase Equity Investments Corp., 240.010 million BDO common shares or 4.91 percent.

Citibank N.A holds 236.437 million BDO common shares or 4.84 percent.

Only Sybase and SMIC hold BDO’s 515 million voting preferred shares.

Voting shares

In an information statement for BDO’s annual stockholders’ meeting on April 20, 2018, the bank listed 4.884 billion shares as of March 8, 2018 as voting stock.

Of 4.884 billion voting shares, 515 million are classified as Series A Preferred Shares, which then were equivalent to 10.544 percent.

This is why BDO’s public stockholders do not elect even one director to the 11-person board, of which five are independent directors.

Ironically, in a public ownership report (POR), BDO named the public as holders of 1.965 billion BDO common shares or 44.98 percent. When computed, the result shows the bank then had 4.37 billion outstanding common shares (2,404,312,075 non-public BDO common shares plus 1,965,428,034 BDO common shares = 4,369,740,109

shares).

disclosed the additional ac - ers of 83,500 common shares. These subscriptions increased common shares.

In the same posting on the website of the Philippine said the public float and foreign ownership level remained at 44.98 percent and 30.69 percent, respectively.

A quarterly filing showed billion minus 339 million for preferred shares equals P12.809 billion. As a result, earnings per share amounted to P2.93.

Compensation

GIS P21 million as the “total annual compensation of directors

Since the GIS was filed for - cal year” when the bank lumped the amount of P688.57 million and P332.33 million as the salary and bonus, respectively, for the year.

As enumerated in an infor - president and chief executive Jaime C. Yu, senior executive C. Tanchanco and Lucy C. Dy, executive vice presidents.

and bonus of P59.11 million. For 2018, it expected to pay the group salary of P127.65 million and bonus of P64.46 million.

As for the other executives, directors as a group unnamed P658.85- million salary and P326.62-million bonus in 2016.

In 2017, it paid them salary of P688.57 million and bonus of P332.33 million.

and bonus at P345.62 million.

said “each director shall receive a reasonable per diem for attendance in every board meeting. It added having authorized the president “to fix and/ or increase the fees and other remuneration of any director or be deemed necessary, subject to board approval.”

Due Diligencer’s take

It is unfortunate that the Securities and Exchange Commission (SEC) does not require the disclosure of individual compensation of listed companies. As regulatory authority, it could have shown the public how the managements.

disclose these on an aggregate basis as a group”, which other listed companies also prefer to do. This being the case, Due Diligencer decided to so some computations to show how

- rectors as a group unnamed, the amount would be equivalent to

Since there is no barometer to - atives to increase the amounts of compensation, no one knows or too much.

For comparison, here is the of Philippine Islands (BPI). In 2017, the Zobel-controlled bank

As computed, P8.348 billion would represent 37.779 percent billion in 2017.

Whichever way one looks at these numbers, they mean to pay much better than other listed companies. Is this true? Just asking.