The tides are shifting, with companies like the Sy-led SM Investments Corp. leading the way by championing meritocracy and rigorous selection processes for leaders, especially independent directors.
SM takes things further with the 2023 appointment of former central bank Governor Amando M. Tetangco Jr. as board chair, making him the first independent director—a historic first for the P1-trillion conglomerate, whose businesses span real estate, banking, retail, and clean power.
“SM’s governance framework exemplifies its commitment to professionalization, accountability, integrity, fairness, sustainability, and transparency,” the company said in a statement.
Meanwhile, more than half of SM’s board seats are held by independent directors, exceeding regulatory standards and setting an industry benchmark.
These include female independent directors Tomasa H. Lipana and Lily Gruba.
Lipana, who leads SM Investments’ audit committee, underscored the importance of a merit-based approach.
“You need to look at qualifications. A board member should add to the company’s reputation which is crucial for investors and other stakeholders,” she said.
Gruba emphasizes the board’s natural diversity as a clear reflection of a well-balanced and fair selection process.
“Ideally, the perfect meritocracy is blind to and independent of issues of gender, background, and race, at least where it is not relevant. This is the next level to aspire for in any organization—that it is composed of persons of merit, not just a collection of diverse personalities,” she said.
Rounding out the roster of independent board directors are Ramon M. Lopez, former secretary of the Philippine Department of Trade and Industry (DTI), and Robert G. Vergara, who previously served as the president and general manager and vice-chairman of the board of trustees of the Government Service Insurance System (GSIS).
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
