JoeyCon tightens belt
The already trim Jose Ma. “Joey” Concepcion III will have to undergo further belt-tightening this year, before he becomes a junior-looking senior citizen.
The chief executive of the family-controlled RFM Corp., who is turning 59 today, will see his paycheck along with four other senior executives shrink by 12.5 percent from last year’s level.
In a report to the shareholders ahead of the July 25 annual meeting, RFM disclosed that Concepcion’s compensation, along with that of his brother and managing director John Marie, sister and senior vice president Maria Victoria Herminia Concepcion-Young, chief financial officer Enrique Oliver Rey-Matias, and VP for supply Roderick Perdigon will shrink this year to around P40.2 million, markedly lower from last year’s P45.2 million and even reduced from 2015’s P42.5 million.
The projected compensation reduction comes even after RFM ended 2016 with a P1 billion profit, the first time the company had cleared the billion-peso hurdle since its founding in 1957.
Despite the watershed event, there are dark clouds on the horizon that have started to impact on RFM’s top and bottom lines.
Net income for the first quarter of 2017 was lower by eight percent due to weaker sales, higher raw material prices, seasonality and the loss of Dole distributorship in 2016, the company said.
On the upside, sales for the first quarter of Selecta Milk and White King mixes were up, along with ice cream, which grew 11 percent, further cementing RFM’s market leader position in the pasta and ice cream markets.
“The positive impact of the savings from the lower cost of central warehouse will be felt in the second quarter of the year,” along with improved “efficiency selling” and marketing budgets, Concepcion said.
One victim of the cost-cutter’s scissors: RFM’s long-time audit firm SGV has been replaced beginning this year by the aggressive BDO Roxas Cruz Tagle and Co.
Filipinos safe from Okada fallout, for now
The Filipino partners and staff of Okada Manila have so far been spared from any collateral damage from a family feud that resulted in Japanese panchinko king Kazuo Okada being removed as chairman of the casino-resort bearing his name.
The Tokyo parent of Okada Manila announced earlier this week that lawyer Manuel Lazaro has been elected chairman of the casino resort following the ouster of the Japanese gaming tycoon over questionable fund transfers.
What was not included in the announcement was that Okada’s second wife had teamed up with Okada’s son and daughter with Okada’s first wife to have the controversial gaming tycoon removed.
“The old man quietly stepped down. There was no physical or bodily removal, contrary to the rumors,” said one Filipino executive, adding that Okada was in Japan all along while the regime change was underway.
According to the gaming grapevine, it is business-as-usual at Okada Manila, especially after Okada’s family decided to keep the other local partners, telecom heir Antonio Cojuangco Jr. and former DBP chairman Reynaldo David, in the Manila board.
The Okada family feud should not impact on the casino-resort’s gaming license since the beneficial owner remains to be Universal Entertainment, the Tokyo parent company, and not Okada in his personal capacity.
In any case, the incoming Japanese replacement directors will have to be vetted by Pagcor, just like the Filipino directors, said an Okada Manila official who asked not to be identified by name. Heard through the grapevine
Photos of San Miguel chairman Eduardo Cojuangco Jr. with former Binibining Pilipinas Aileen Damiles and two teenage daughters are circulating in Facebook and You Tube.
The undated photographs show Cojuangco, who turned 82 last June 10, apparently in the pink of health and obviously enjoying the company of the three ladies, looking like one happy family.
One of the two teenage girls even looks like a spitting image of the Boss.
E-mail: moneygoround.manila@yahoo.com