BIZ BUZZ: Guess who? New PNB president coming soon

MANILA, Philippines – The race for the presidency of Philippine National Bank (PNB) now appears to be in its final stretch as incumbent boss Florido “Doy” Casuela is expected to bow out of the boardroom of the Lucio Tan group’s banking arm very soon, according to reliable Biz Buzz sources.

Casuela—who is leaving big shoes to fill—has already intimated to some people that he will resign from the board. But he has kept mum on who his successor will be.

We’ve earlier reported about two internal candidates: Dondi Baltazar and Chester Luy, who are both part of senior management.

READ: BIZ BUZZ: Time to stock up on ALI shares?

But we also referred to an ‘external prospect,’ a former bank president, who is also believed to be a strong contender.

We’re talking about Edwin Bautista, under whose term Union Bank of the Philippines embarked on a digital transformation and accelerated expansion with the landmark acquisition of the local consumer and retail banking assets of Citibank.

Bautista had turned over the reins of UnionBank to Ana Aboitiz-Delgado at the start of this year, but remains a director at the Aboitiz-led bank.

PNB is currently the eighth largest bank in the country in assets (about P1.2 trillion as of end-September), one rank higher than UnionBank (P986.5 billion).

The challenge of running another major bank, albeit with more complex shareholder dynamics, may well be within Bautista’s risk appetite.

For his part, Casuela has done a good job of putting the house in order, boosting profitability and allowing PNB, once the country’s largest, to declare dividends for the first time since 2016.

But whoever the incoming CEO is faces another key challenge: improving succession planning.

Although the mandatory retirement age at PNB is 60, we hear that many senior positions are being filled either by management contracts (without benefits) or term extension (with benefits) of people past retirement age.

For instance, out of the four executive vice president (EVP) posts, one has been vacant for the past two years, while one has been under an extension arrangement.

Such arrangements are said to be quite rampant, resulting in the slow ascent of new blood up the corporate ladder. This could, in turn, affect talent retention in a highly competitive industry.

“Either improve succession planning or change the policy (mandatory retirement age),” a well-placed source commented. – Doris Dumlao-Abadilla

Red carpet to roll out for new DICT chief

The new secretary of the Department of Information and Communications Technology (DICT), Henry Aguda, may finally start his term this week, and we heard that a warm reception awaits him.

Biz Buzz learned that officials were “optimistic” about what Aguda could bring to the table, especially at a time when the government is ramping up efforts to beef up internet connectivity.

Aguda, who was named as DICT chief just last week, previously served as president of UnionDigital Bank. He was also the board chair of City Savings Bank and UBX Philippines.

Apart from these, Aguda was also engaged in the telecommunications and technology industries.

Aguda replaced Ivan John Uy, who tendered his resignation this month after three years of service. — Tyrone Jasper C. Piad