Brokers and stock watchers are fastening their seat-belts ahead of the anticipated upheaval in the upcoming elections of the Philippine Stock Exchange (PSE) board next month.
Former First Gentleman Mike Arroyo and Finance Secretary Sonny Dominguez are reportedly working behind the scenes to put their imprint in next year’s board which will have fewer seats allotted for broker-directors.
A Babbler said Arroyo has accumulated enough shares and proxies to have his son, Dato, elected as one of the independent PSE directors.
Arroyo’s son-in-law, investment banker Aloysius ‘Luigi’ Bernas, used to be a PSE director while his sister-in-law, stock broker Aleli Morales-Arroyo, was former PSE chair.
The PSE board will have 10 independent directors in the coming elections from the current eight as Dominguez has ordered the Securities and Exchange Commission (SEC) to enforce the Securities Regulation Code rule mandating more balanced sectoral representatives.
For years, the PSE has resisted the reduction in broker seats on the board but Dominguez has reportedly put his foot down and won’t tolerate any more delays.
One of the seven incumbent broker directors, BA Securities’ Francis Chua, chair emeritus of Philippine Chamber of Commerce and Industry, is not seeking a new term. Independent director and PSE chairman Jose T. Pardo, is also calling it quits.
The Babbler said most brokers pegged PSE broker-director Ali Yu of RS Lim and Co. Inc. as the most likely to be cut from the board.
The other incumbent broker-directors are Eddie T. Gobing of Lucky Securities, Wilson L. Sy of Wealth Securities, Eusebio H. Tanco of Venture Securities, Ma. Vivian Yuchengco of First Resources Management and Securities and Emmanuel O. Bautista of Deutsche Bank. The Babbler said these five directors have enough proxies to retain their seats.
The top stockholders of PSE are San Miguel Corporation Retirement Plan (9.25 percent), Premier Capital Venture (8.17 percent), Banco de Oro for PLDT Retirement Fund (8.17 percent) and Government Service Insurance System (8.17 percent).