The Securities and Exchange Commission wants listed companies to comply with the rules on the disclosure of salaries of top executives under the Revised Corporate Code.
Section 29 of the Revised Corporation Code which took effect in February this year provides that “corporations vested with public interest shall submit to their shareholders and the Commission an annual report of the total compensation of each of their directors and trustees.”
The SEC noted that most of the listed companies in their 2018 annual reports filed with the corporate regulator in April clustered the salaries of directors and did not itemize them.
Ayala Land Inc. in its 2018 annual report disclosed that total annual compensation of the president and top four highly compensated executives amounted to P235.25 million in 2018.
Metro Pacific Investments Corp. in its 2018 annual report also disclosed that the aggregate compensation it paid in 2018 for its top five executives amounted to P115.9 million in terms of salaries and P89.1 million in bonuses.
Meanwhile, the SEC said it was finalizing a plan to increase the public ownership of listed companies on a staggered basis.
SEC chairperson Emilio Aquino said in a recent interview the commission would hold this month a strategic planning on how to develop the domestic capital markets, including increasing the minimum public ownership.
“We have to do it because we to develop the capital market and the only way is to is to us to do this,” Aquino said.
The SEC during the strategic planning will invite resource speakers from the Asian Development Bank and the private sector to help the corporate regulator determine the right time to implement a higher public ownership.
Depending on the outcome of the strategic planning, Aquino said the SEC was considering implementing the increase in the public ownership requirement on a staggered basis, initially from the current 10 percent to 15 percent and eventually to 20 percent.
The SEC in 2017 identified 68 listed companies companies with a public float of less than 20 percent.
The SEC earlier required companies planning to conduct a initial public offering to comply with the 20-percent minimum public ownership.