It’s a question that frequently comes up whenever talk turns to pay and salaries: How much do the CEOs and executives of the country’s biggest companies earn as salaries?
Perhaps only the commissioner of the Bureau of Internal Revenue (BIR) would ever know the true answer to the question.
However, thanks to listed companies’ disclosures to the Philippine Stock Exchange (PSE), the rest of us can get an approximate idea of how much the top executives are paid each year. As part of their annual reports, listed companies disclose the total compensation of their four to six highest-paid executives.
Towards this end, Entrepreneur Philippines compiled the reported executive compensation in 2016 of the country’s biggest listed companies. We limited the list to the 25 largest firms by market capitalization as of the end of second quarter in 2017. After gathering the total compensation, we computed the average pay of the top-paid executives and ranked them from largest to smallest.
Surprisingly, there seems to be little relationship between the size of a company’s market capitalization and executive pay. The firm that pays its top executives the highest on average is not SM Investments Corp., the most valuable company at the PSE, but Metro Pacific Investments Corp., the local holding investment unit of Hong Kong-based First Pacific Company Ltd. On average, Metro Pacific pays its top executives about four times more than the holding company owned by the country’s richest man, Henry Sy Sr.
Metro Pacific Investments Corp. is led by Manuel V. Pangilinan as chairman and Jose Ma. K. Lim as president. It was also the country’s 18th biggest listed company by market capitalization as of end-June 2017.
Alliance Global Inc. was ranked 24th but no executive compensation data was provided in their annual report. Thus, Megaworld Corporation, which was ranked 26th, was included in this list.
This article originally appeared on Entrepreneur.com.ph. Minor edits have been made by the Cosmo.ph editors.