PASAY CITY, Philippines, Jan. 27, 2025 — The emphasis on meritocracy in effective governance is rising, prioritizing qualifications and independent judgment to drive organizational growth from the boardroom.
Frameworks prioritizing merit and excellence highlight the importance of substantial board member contributions.
SM Investments Corporation recently showcased this principle through its independent directors. Tomasa “Tammy” Lipana, Independent Director and Chairperson of SM Investments’ Audit Committee, stressed the importance of qualifications, stating that board members should enhance the company’s reputation, vital for investors and stakeholders.
Atty. Lily Gruba, an Independent Director at SM Investments, similarly emphasized the inherent diversity within a successful meritocracy. She stated that an ideal meritocracy remains unbiased by gender, background, or race, where irrelevant, representing the ultimate goal—a board comprised of highly qualified individuals, not simply a diverse group.
SM’s governance framework reflects its commitment to professionalism, accountability, integrity, fairness, sustainability, and transparency. The company has been improving its corporate governance by promoting independent judgment and fostering leadership aligned with the highest standards.
A significant 2023 decision saw the appointment of Amando M. Tetangco, Jr., former Governor of the Bangko Sentral ng Pilipinas, as Chairman of the Board—the first independent director to hold this position in SM’s history. This underscores the company’s emphasis on expertise, professionalism, and the value of independent leadership in shaping its future.
Over 50% of SM’s board members are independent directors, surpassing regulatory requirements and setting an industry standard. Two of these directors are women with expertise in taxation, corporate law, mergers and acquisitions, audit, and accounting, demonstrating a balance between diversity and merit. Independent directors also lead key committees (Audit, Corporate Governance and Sustainability, Related Party Transactions, and Risk Management), ensuring objective oversight of corporate matters.
Rounding out SM’s notable independent board directors are Ramon M. Lopez, former Secretary of the Philippine Department of Trade and Industry (DTI), and Robert G. Vergara, former President and General Manager and Vice-Chairman of the Board of Trustees of the Government Service Insurance System (GSIS).
These initiatives demonstrate a dedication to fostering performance and competence, upholding high governance standards, meeting investor and societal expectations, and driving inclusive growth.
SOURCE SM Investments Corporation
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