Razon, the Philippines’ richest man, subscribed to 22.01 million Preferred C shares under a new incentive plan created exclusively for ICTSI’s chief executive.
Rewarding performance
These are special shares that can eventually be converted into common ICTSI stock, although the company has yet to disclose the conversion price and other key terms.
ICTSI expects compensation for Razon and its four other highest-paid executives to reach $3.6 million in 2026, up from $3.2 million last year. Most of the package consists of bonuses and other compensation, including non-cash awards under ICTSI’s existing Stock Incentive Plan.
Most valuable blue chip
The compensation comes after ICTSI became the biggest firm on the Philippine Stock Exchange Index, with its market value crossing P2 trillion as its shares more than doubled over the past 12 months and gained over 450 percent in five years.
ICTSI closed flat at P996 apiece on Tuesday.
The rally has sharply increased the value of Razon’s controlling stake while rewarding investors as ICTSI expanded its network of container terminals across Asia, the Americas, Europe, the Middle East and Africa.
Earlier this year, ICTSI created 25 million Preferred C shares this year exclusively for its CEO Stock Option Plan. This means Razon subscribed to about 88 percent of the entire special share class.
Value remains unclear
The Preferred C shares are non-voting and non-participating, but their eventual value and potential dilution remain unclear because ICTSI has not disclosed how many common shares Razon could ultimately receive.
US investment manager Boston Partners, an investor at ICTSI, earlier voted against the plan, citing insufficient disclosure of its performance hurdles, vesting periods and other key conditions.
—Edited by Miguel R. Camus
