PLDT sets key management changes

PHILIPPINE Long Distance Telephone Co. (PLDT) announced key management changes on Tuesday, led by the retirement of its longtime CEO and president, ahead of what its chair Manuel V. Pangilinan described as “tougher times.”

The retirement of company CEO and president Napoleon Nazareno, which is effective by the end of 2015, also marks the search for a successor, who would need to have good exposure in the digital business that Nazareno oversaw at the tailend of his 17-year career with the telco, Pangilinan said.

Pangilinan said he would take Nazareno’s place as interim CEO and president while searching for a replacement likely within PLDT’s ranks.

“We are not in a hurry,” Pangilinan said in a press conference on Tuesday.

Pangilinan described 2016 as a year of “consolidation” as the company takes stock and possibly “harvests what we have invested in the past.”

“We foresee tougher times ahead both in terms of developments affecting the industry and [with] the entry of a possible new player in the market,” Pangilinan said, referring to the potential entry of Australia’s Telstra Corp. Ltd. with partner San Miguel Corp.

Telcos across the world are seeing their traditional business models shift toward more digital services with the surge in demand for Internet applications and as more inexpensive smartphones flood the market.

This shift for PLDT was led by Nazareno, whose retirement was extended by a year as he was asked to stay to launch the company’s own digital transition.

PLDT said Nazareno would remain in the board of directors of PLDT until a replacement has been appointed. He will also remain as non-executive director of First Pacific Co. Ltd. and a member of the board of Rocket Internet.

PLDT also announced other key management changes on Tuesday.

Katrina Luna-Abelarde takes on the role of wireless consumer operations head; Oscar Reyes Jr. assumes the position of PLDT Home operations head, while Albert Mitchell Locsin will become head of SME Business, replacing Luna-Abelarde.

Victorico Vargas will be appointed an officer of First Pacific Co. (FPC) effective Jan. 1, 2016 with the mandate of handling the business transformation efforts of companies within the FPC group.

“As such, he will head this BTO (business transformation office) and, in the first instance and as priority, drive the transformation-related activities of the PLDT Group, including the organization and human capital requirements of a digital company,” PLDT said.