MANILA, Philippines —Aboitiz Equity Ventures Inc. is keeping Erramon “Montxu” Aboitiz as its chief executive officer until 2019, extending his term by three years in a vote of confidence in his ability to sustain the group’s growth momentum.
In a disclosure to the Philippine Stock Exchange on Friday, AEV said its board had passed a resolution to defer Aboitiz’s retirement. Originally set on 2016 in line with the company’s policy to retire executives at age 60. The board voted to extend his employment to December 31, 2019.
The company said the extension of the tenure of Aboitiz, 58, was in view of the group’s significant growth over the past few years and its further growth aspirations.
“The AEV board is committed to ensuring that the Aboitiz group’s long-term goals are successfully attained. The extension of Mr. Aboitiz’s employment was made to ensure a smoother transition of leadership and the continued execution of the Group’s initiatives to achieve its long-term strategic plans,” the company said.
“The board is confident that in a few years, the organization will be ready for a smooth transfer of leadership to continue executing the group’s strategic initiatives,” it added.
Aboitiz has indicated plans to pursue “exciting opportunities leading up to the Asean (Association of Southeast Asian Nation) economic integration.” After the acquisition of one of Vietnam’s largest aqua feed producer, the group’s food unit is looking at a couple of flour mills in the region and likewise exploring power projects in other countries.
Aboitiz has served as president and CEO of AEV since January 2009. He has been a director of AEV since 1994 and was its executive vice president and chief operating officer from 1994 to December 2008. He is also president and CEO of the group’s flagship unit Aboitiz Power and director of banking unit Union Bank, food unit Pilmico Foods Corp. as well as RP Energy. He also chairs Aboitiz Foundation and is a director of the Family Business Development Center of Ateneo de Manila University and the Philippine Disaster Recovery Foundation.
He received a Bachelor of Science degree in Business Administration, major in Accounting and Finance, from Gonzaga University in Spokane, Washington, USA.
Under Aboitiz’s leadership, AEV was named the “best managed” company in the Philippines in the 2013 annual survey of investors and analysts across the region by FinanceAsia magazine. Aboitiz himself was named by FinanceAsia the best CEO that year.