Much is known about how much the country’s richest tycoons are worth. A cursory look at the annually published list of top world billionaires by US magazine Forbes would reveal the size of their publicly known fortunes.
In building their wealth, these billionaires rely heavily on the top executives of their major companies, most of which are also the most valuable companies listed on the Philippine stock market.
But how much do they pay these top executives of their major holding and operating companies?
Unfortunately, there is no publicly available information on the compensation of listed companies in the Philippines, unlike in the United States and other markets.
At best, what Philippine listed companies disclose in the annual report submitted to the Philippine Stock Exchange (PSE) are the total compensation, including bonuses and allowances, of their top five highest-paid executives.
With this in mind, Entrepreneur Philippines examined the annual reports of the 100 companies with the highest market value as of the end of the first quarter of 2018, and calculated the average compensation in 2017 of the top five highest-paid executives of each of the companies.
The companies were then grouped according to Philippine billionaires who owned or controlled them. The list of billionaires, in turn, came from Forbes magazine’s latest listing of dollar billionaires around the world published in March 2018.
The results are summarized in the infographic on this page, and gives a good idea how much each billionaire pays the top executives of his major listed companies.
Interestingly, Ramon Ang and Eduardo Cojuangco Jr., the country’s ninth and 11th richest billionaires, respectively, pay their top executives in San Miguel Corp. the highest, equivalent to Php95.9 million in 2017. George Ty, the country’s sixth richest man, is a far second. The top five officers of his Metropolitan Bank & Trust Co. received an average of Php43.9 million last year.
Does this suggest there is little correlation between the wealth of a tycoon and the amount he pays his top executives?
This story originally appeared on Entrepreneur.com.ph.
* Minor edits have been made by the Esquiremag.ph editors.