The Board Corporate Governance Committee ensures that the remuneration for directors and executives is consistent with the Company’s culture, strategy, and business policies. Remuneration rates are also maintained at a level sufficient to attract and retain directors and officers who are needed to successfully run the company.
AboitizPower ensures that it gives competitive remuneration to its directors and officers, and regularly benchmarks its compensation against another similar-sized Philippine-based companies through the market salary surveys.
The Company engages the services of independent remuneration consultants to determine the compensation, as well as any annual merit increases, for directors, officers, and team members. Factors such as inflation and consumer price index are taken into account to ensure that the compensation structure will sustain the Group’s competitiveness while also attracting and retaining the best talent. The results of the study are then presented and discussed during the Company’s first Board Corporate Governance Committee meeting for the year.
During its February 18, 2019 meeting, the Corporate Governance Committee approved the increase the directors’ monthly allowance from PHP180,000 to PHP200,000 for the Chairman, and from PHP120,000 to PHP150,000 for other directors. The committee also approved the increase in the per diem for every meeting attended as follows:
Other than the director’s per diem and monthly allowance, there are no other standard arrangements pursuant to which directors are compensated or to be compensated. Officers are rewarded based on their individual performance and on their ability to execute their duties and responsibilities effectively.
The Board of Directors do not participate in discussions or deliberations involving his/her own remuneration. Thus, all proposed changes in Board remuneration are approved by the shareholders and disclosed to the public in a timely manner through PSE and SEC disclosures and the Company’s Annual Report (SEC Form 17-A). The Company believes that the information provided in the disclosures provide sufficient information on director and executive remuneration, while maintaining the privacy of the individuals concerned in compliance with applicable laws and regulations.