Public owns 33.32% of FEU’s outstanding stocks but don’t have a board seat

FAR Eastern University Inc. (FEU) has nine directors or trustees who make up its board. Lourdes R. Montinola is the chairman emeritus who has 11,627 common shares, or 0.048 percent of 24,055,763 outstanding common shares. Meanwhile, Aurelio R. Montinola 3rd, who has 458,165 common shares directly owned and 6,656 common shares indirectly owned for a total of 464,821 common shares, or 1.932 percent, is the chairman of the nine-person board, according to the website of the Philippine Stock Exchange (PSE). The others were Michael M. Alba, one nominal share; Angelina P. Jose, 776,656 common shares (direct) and 3,029 common shares (indirect); Paulino Y. Tan, a nominal share; and Antonio R. Montinola, 113,021 common shares. The school had three independent directors (IDs), namely, Edilberto C. de Jesus, 329 common shares; Sherisa P. Nuesa, 2,219 common shares; and Jose T. Sio, 14 common shares, according to the website. (The ownerships of FEU directors/ trustees were taken from FEU’s public ownership report or POR.)

The school’s outstanding common shares, which have P100 par value, were based on FEU’s POR as of Dec. 31, 2020. Of FEU’s 24,093,094 issued common shares, 37,331 were treasury shares. It listed FEU’s two principal stockholders: Seyrel Investment and Realty Corp. as direct owner of 6,887,051 common shares, or 28.63 percent; and Sysmart Corp., with direct ownership of 5,204,608 common shares and indirect holdings of 50,498 common shares, or a total of 5,255,106 common shares, or 21.846 percent.

FEU credited the public with ownership of 8,016,266 common shares, or 33.324 percent, according to its POR.

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In FEU’s 2020 general information sheet (GIS), 1,506 investors invested in 24,055,763 outstanding common outstanding common shares, equivalent to 48.112 percent of 50 million authorized capital stock (ACS). Foreigner owners of 276,140 common shares were 24 Americans, 154,674 FEU common shares; six Canadians, 2,424 common shares; six Chinese, 8,411 common shares; 11 Australians, 83,728 common shares; and one under “others,” 26,903 common shares.

In addition to Syrel Investment and Sysmart of the Sy family, the GIS also included Desrey Inc., 1,924,956 FEU common shares, or 8.002 percent; and Sr Victorina D. Palanca at No. 6 with 539,616 common shares, or 2.243 percent.

PCD Nominee Corp. held 1,291,449 FEU common shares, or 5.369 percent, as record holder for Filipinos, according to the GIS.

By the way, FEU’s GIS showed its nine directors were paid P84.23 million during the preceding fiscal year, which probably refers to 2019.

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In its report for the third quarter of Sept. 30, 2020, FEU reported P5.625 billion retained earnings, which it divided into P1.304 billion as “appropriated” and P4.321 billion as “unappropriated.”

FEU last declared what it defined as “a reduced cash dividend of P3.00 per share … to all stockholders of record as of 03 December 2020, payable on 16 December 2020. The total cash dividend amounts to P72,167,289.

“Resolved, further, that for purposes of the above cash dividend declaration, the books will be closed from 07 December 2020 to 16 December 2020, both dates inclusive.”

On Feb. 19, 2019, FEU declared cash dividend of P8 per share to all stockholders as of 06 March 2019, payable on 20 March 2019. The total cash dividend amounts to P131.816 billion. This could be the reason for “a reduced cash dividend of P3 per share…”

***** Finally, FEU’s top executives are as follows: Aurelio R. Montinola 3rd, chairman and chief executive officer; Michael M. Alba, trustee and president; Juan Miguel R. Montinola, chief finance officer; Maria Teresa Trinida P. Tinio, senior vice president, academic affairs; and Glenn Z. Nagal, comptroller. In 2018-2019, FEU paid them salary of P25.769 million, bonus of P6.221 million, and other annual pays and perks, and P3 million; for 2019-2020, P26.80 million for salary, P6.81 million for bonus, and other annual pays and perks of P3 million; 20202021, (estimate only) salary of P23.51 million, bonus of P6.162 million, and other annual pays and perks, P3 million.

The compensation filing also disclosed that “all officers and trustees as a group” were paid in 2018-2019 salary of P50.258 million, bonus of P11.444 million and other annual pays and perks of P13.5 million; 2019-2020, salary of P57.470 million, bonus, of P13.259 million, and other annual pays and perks of P13.5 million; 2020-2021, salary of P49.128 million, bonus of P12.876 million, and other annual pays and perks of P13.5 million.

FEU peaked at a 30-day high of P660 on Nov. 24, 2020 when it opened at P615, which was the session low; and closed at a 30-day and session high of P660.

Are FEU’s top executives included among “all officers and trustees as a group”? Just asking.