Biz Buzz: Succession at SM
It came as a big surprise to many, even to some of the group’s executives—the “semi-retirement” of long-time SM Prime president Hans Sy, that is.
During one big party for executives at the plush Conrad Manila, Sy casually announced his decision to relinquish day-to-day operations to chief finance officer and executive vice president Jeffrey Lim in order to spend more time with his family.
Under his leadership, SM Prime became the biggest property firm in the country and one of the largest in Southeast Asia and planted its seeds in mainland China. To date, it is the most valuable company in the local stock exchange with a market capitalization of P811.5 billion, even exceeding parent conglomerate SM Investment Corp.’s valuation of P795 billion.
During the SM party (as recounted by guests), Hans told his successor, Lim, that what he was inheriting was “an easy job.” As a starter, he said all Lim had to do was to be professional and ethical in doing business. And then he proceeded to enumerate at least 30 other tasks at hand. (So much for being “easy”.)
Hans, who is turning 61 this year, also said in jest that the first thing that the 55-year-old Lim should do (perhaps speaking from experience) would be to “dye his hair because it will turn white,” which of course elicited laughter because his successor had no more hair to dye in the first place.
This does not mean that Hans will be out of the picture as he will be active at the board level, similar to his engagements in other businesses like China Bank.
His older brother Henry “Big Boy” Sy Jr. will remain chair of SM Prime. In the case of the Sys’ banking arm BDO Unibank, for instance, management had long been professionalized (with Nestor Tan at the helm, even when BDO was still a much smaller bank).
So those looking for intrigue behind the changing of the guard will be disappointed as this is all part of succession planning and Hans’ bid to enjoy more out of life.
Lim, meanwhile, is expected to be a “transition president” as the third generation Sys is still too young to take the top posts. If we are to guess the succession planning at the Sys’ property side of the business, the best bet from the third-generation Sys to take over once Lim retires is Hans’ son, Hans “Chico” Sy Jr., one of the eldest among Henry Sy’s grandchildren.
Chico, who is in his 30s, is now vice president for SMEDD (SM Engineering, Design and Development) Corp., the retail design and construction delivery arm of SM Prime. The Australian-educated gentleman handles all the design and construction-related activities of the retail portfolio of the SM group of companies. An engineer like his dad, Chico was the first in his generation to convince the elders to allow him to pursue overseas studies, blazing the trail for other Sy youngsters. He was likewise among the first to join the family business. He could very well be the next CEO in the making. Doris Dumlao-Abadilla
New boss (and new policy?) at PPA
In an interesting turn of events in the country’s ports industry, the Duterte administration has appointed lawyer Jay Santiago as the new head of the Philippine Ports Authority, replacing officer-in-charge Raul Santos.
Santos was the interim head who was the subject of a corruption complaint filed by San Miguel Corp. for opposing the bid of Manila North Harbor Philippines Inc. (in which the conglomerate has a significant stake) from accepting foreign cargo, despite a law enacted last year that liberalized the local ports business.
The Bureau of Customs, on the other hand, took the side of Manila North Harbor and has been at loggerheads with the PPA ever since, with the former heads of both agencies exchanging testy letters over the dispute.
Thus, Santiago takes over a government agency mired in a policy dispute between a relative newcomer like Manila North Harbor (backed by San Miguel’s Ramon Ang), which wants a piece of the action in the international cargo handling business on one side, and incumbent giants like Enrique Razon Jr.’s International Container Terminal Services Inc. and Eusebio Tanco’s Asian Terminals Inc. on the other.
With these tycoons jostling over the ports business, it will be interesting to see over the next few days and weeks which way Santiago—who was previously the legal chief of the Philippine Amusement and Gaming Corp. until a couple of years ago—will take the PPA. Abangan! Daxim L. Lucas
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