PASAY CITY, Philippines, Jan. 24,
2025 /PRNewswire/ -- Meritocracy is advancing as
an indicator of effective governance, with a focus on
qualifications, expertise, and independent judgment to propel
organizations forward and drive growth from the boardroom.
Frameworks focused on merit and excellence exemplify the growing
emphasis on ensuring that board members bring meaningful
contributions to their roles.
SM Investments Corporation recently highlighted this principle
from the lens of its independent directors. Tomasa "Tammy" Lipana,
Independent Director and Chairperson of SM Investments' Audit
Committee, emphasized the importance of qualifications: "You need
to look at qualifications. A board member should add to the
company's reputation which is crucial for investors and other
stakeholders."
This sentiment is echoed by Atty. Lily
Gruba, Independent Director of SM Investments, who pointed
to the natural diversity within the board as a product and clear
indication of a healthy meritocracy. "Ideally, the perfect
meritocracy is blind to and independent of issues of gender,
background, and race, at least where it is not relevant. This is
the next level to aspire for in any organization—that it is
composed of persons of merit, not just a collection of diverse
personalities," she said.
SM's governance framework exemplifies its commitment to
professionalization, accountability, integrity, fairness,
sustainability, and transparency. The company has been raising the
bar on corporate governance by promoting independent judgment and
fostering leadership that aligns with the highest standards.
A landmark decision in 2023 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 prioritization of expertise,
professionalism and the value of independent leadership in shaping
its future.
Over 50% of SM's board seats are held by independent directors,
exceeding regulatory standards and setting an industry benchmark.
Two of these directors are women known for their expertise in
taxation and corporate law, mergers and acquisitions, audit and
accounting, to name a few, highlighting a balance between diversity
and merit. Independent directors also lead key committees,
including Audit, Corporate Governance and Sustainability, Related
Party Transactions, and Risk Management, further ensuring objective
independent judgment on corporate affairs.
Completing SM's distinguished roster of independent board
directors are Ramon M. Lopez, former
Secretary of the Philippine Department of Trade and Industry (DTI)
and Robert G. Vergara who previously
served as the President and General Manager and Vice-Chairman of
the Board of Trustees of the Government Service Insurance System
(GSIS).
These initiatives reflect a commitment to fostering performance
and competence, while upholding high governance standards, meeting
investor expectations and societal demands and helping drive
inclusive growth.
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