Cheif Executive officers

1. Reported by: Mr. Gerry O. Gatawa

2. I would present to you a
man seemed to have been
born with a golden touch
because everything he
touches becomes very
valuable like gold….

3. Chairman, President and CEO: PLDT ($1.3 million (over P57
million)
Chairman: TV5
Founder and CEO: First Pacific Company Ltd. (US$8.5 million
(about P380 million.)
Owner: Cignal Digital TV and Smart Communications
Chairman of the Board of Trustees: Ateneo de Manila
University (ADMU)
President and CEO: Manila Electric Company (Monthly
Salary—Php. 950,000)
Chairman and CEO: Philex Mining Corporation (Monthly
Salary—Php. 230,000)
Chairman: Metro Pacific Investments Corp (Monthly
Salary—Php. 588,000)
3rd highest paid CEO with a combined total
compensation of P2.65 million per month.
Manny V. Pangilinan
(MVP)
Net Worth:
4.5 Billion

4. Came from a family who shares
strong determination to achieve
success
» Born in July 14, 1946
» 2nd son of Mr. Dominador
Pangilinan who started as a
messenger at PNB but retired as
the President of Traders Royal
Bank
BACKGROUND

5. » Manny was a scholar during his
elementary and secondary years at
San Beda where he was given a
daily allowance of 25 centavos.
» When he went to Ateneo de Manila
University where he took up a
Bachelor Degree in Economics his
allowance improved to P10 per
week.
» Still too modest compared to most
of his classmates who have their
own drivers. This did not deter him
instead.
EDUCATION

6. » After college, he took MBA in the
U.S. but his father could not afford it
but won the national competition of
scholarship to University if
Pennsylvania’s Wharton School
offered by Procter & Gamble.
» Procter and Gamble turned down
his application. Determined to get a
job, he grabbed the first
opportunity that came his way and
that was as an executive assistant
to the president at Phinma with a
monthly salary of P 1,000.
LUCKS AND LET
DOWNS

7. » Wanting to emphasize his
independence, Manny left Phinma
after six years and decided to work
abroad.
» He worked at Bancom International,
a Philippine Investment bank based
in Hong Kong. He expected to be
CEO but he did not get it.
» At the age of 30, he got into mid-life
crisis, but he was able to pull
himself together and went back to
Hong Kong and continued with
American Express.
LUCKS AND LET
DOWNS

8. » In 1981, he founded the First
Pacific in Hong Kong with the
help of people he met while
working in the region for some
years that he was able to gain
the trust of some who supported
his idea on the regional banking
and trading business.
» It started with 6 people. By 2006,
First Pacific has a whopping $5
billion and 60,000 work forces all
over the region.
NEW CHAPTER

9. » After 22 years working abroad,
Manny came back to the
Philippines determined to enforce
the badly needed changes in
Philippine Long Distance
Telephone Company (PLDT).
» After some unpopular decisions,
he proved to all who did not
believe in his move that they can
indeed make the change.
» He also did the same with Piltel
or Talk N’ Text.
MAKE THE CHANGE

10. PLDT STOCK CHART
The late '90's
was a time of
formidable
challenges
for PLDT
due to Asian
financial
crisis.
First Pacific
acquired a 17.5-
percent stake in
PLDT for
approximately P29.7
billion or some $749
million at that time.
PLDT acquired
Smart
MVP
as
Chair-
man

11. FIRST PACIFIC ACQUIRES
17.5% STAKE IN PLDT
By 1995:
• With the passage of the Telecommunications Act
and the subsequent deregulation of the Philippine
Telecommunications industry, the company has
been de-monopolized. Later that year, Hong
Kong-based First Pacific Company Ltd. Acquired a
17.5 % stake in PLDT making it the majority
owner of the conglomerate.
• The company’s CEO Manuel V. Pangilinan
became the new conglomerate’s President
replacing Cojuangco, who assumed post as
Chairman until 2004, when Pangilinan became
his successor.

12. INVESTING IN ICT
By 2000:
• One of the key steps was the formation of
ePLDT, the PLDT Group’s principal vehicle for
investments in information and
communication technology.

13. INNOVATING THE
LANDLINE
By 2002:
• PLDT continued to innovate and introduced a
prioneering prepaid landline service where
subscribers can load up their phones with
P500-load that is valid for two months and
with a one-month reprieve to reload.
By 2004:
• The PLDT Board of Directors appointed
Manuel V. Pangilinan to the position of the
Chairman of the Board while retaining his post
as Chairman of the Board of Smart and
ePLDT.

14. INNOVATING THE
LANDLINE
By 2005:
• PLDT began upgrading its network to the Next
Generation Network, a broad term for certain
emerging computer network architectures and
technologies that can encompass voice, data and
video where all information is efficiently
transmitted via internet.
By 2006:
• PLDT saw the rapid growth of its broadband
business on the back of the Group’s wired and
wireless infrastructures. PLDT MyDSL and
SmartBro broadband subscribers doubled
265,000 by year end.

15. PLDT ACQUIRES DIGITEL
March 30, 2011
• PLDT and JG summit Holdings board of directors
approved the acquisition by PLDT of Digital
Telecommunications Phil. Inc (DGTL) representing
51.55 % equity stake.
• The transaction had an equity value of P74.1
billion ($1.7 billion)
• Benefits of the merger are:
 consumers will benefit from wider and
complimentary array of products and improve
quality of service; and
 Paired networks will accelerate continue expansion
of broadband rollout and other next-gen
technologies in both fixed and wireless space

16. 2012 BID FOR TV STATION
• Pangilinan secured a third player among the
country’s television networks the Associated
Broadcasting Corporation or ABC Channel 5,
later rebranded as TV5 and which today
belongs to a news network that includes
Radyo5 (92.3 on the FM band) Aksyon TV
(cable) and AKTV (sports channel/cable) and
InterAksyon (Social media). ABC 5 is 100%
owned by PLDT’s Mediaquest.

17. PLDT and GLOBE ACQUIRES
SAN MIGUEL TELCO
2016
• PLDT and GLOBE acquired for P69.1 billion
the telecommunication business of San
Miguel Corporation following the collapse of
talks with Australian telecom Telstra
Corporation.
• The acquisition deal will now give the two
telcos access to more radio frequencies
(700MHz).
• PLDT shares increase by P114 or 6.54% to
P1,855.

18. What can we
learn from
MVP?
Self-made people,
really comes from
doing the right
thing—no shortcuts,
no corruption—and
earning it the right
Tell the truth. Failure is not
frowned upon.
Disruption happens anytime,
anywhere. “Business landscape
changes rapidly, those who will
survive are those most adaptive
to change.”
Be independent, then take risks. “I
wanted to be on my won, take the
risk and see where my fortunes
are.
Be bold because you’re young
enough to fail. “I am young
enough to make a mistake. If I
wait any longer, I’d be too
scared.”
Think inclusive. “We are here to improve
lives, because improving lives helps our
business”
Value temperance. “One
just has to be sensitive
about spending his
money”
Be practical. “Keep it short
and simple, keep it real.”
Be diligent. There are
no shortcuts. You have
to earn it!

19. Chairman: JG Summit Holdings
Chairman and CEO: Robinsons Retail Holdings
Owner: Robinsons Mall
Net Worth: $5 Billion
2nd Richest entrepreneur in the Philippines by Forbes
JOHN GOKONGWEI
Not all greats
start from small
beginnings.
Sometimes,
they are born
privileged, later
to be taken
away from
them, but
succeeding
once again in
the future.

20. » His father died of typhoid when he
was 13 and the family discovered
that much of their business was built
on debt. The movie theaters, cars
and big house were all seized by
the banks.
» John Gokongwei Jr., being the
eldest child is the breadwinner of
the family.
» He learned how to sell food and
other goods in the streets of Cebu,
competing with men and women
who were at least twice his age.
EARLY ENTERPRISE

21. » In his teenage years,
Gokongwei bought his
own bicycle so he can go to
nearby towns and barrios
to sell soap, thread, candles
and other things that
people need.
» He would wake up early
so he can start selling early
on.
» By sunset, he would be on
his way home to bring
food and money back to
his family.
EARLY ENTERPRISE

22. Lesson:
• “I did not become an entrepreneur to
help the country, create jobs, or even
to profit from something in which I
excelled in. I became an
entrepreneur to survive.”
- John Gokongwei, Jr.
I rode my bicycle to survive

23. • He broadened his inventory and used
wooden boats to trade goods in Manila.
• “After two years of biking and
peddling, at seventeen, I entered my
batel age. The batel was a small, a
very utilitarian boat that defied the
open sea and would take me further
from Cebu, and all the way to
Lucena, from where I would take a
truck to Manila with companions
twice or thrice of my age” – John
Gokongwei Jr.
“THE BATEL AGE”
1944

24. • After WW2, he started
importing goods from the
United States. Between
1945-1955, he went to the
United States several times
to get goods for sale in the
Philippines—clothes, tires,
food, fruits, milk, flour,
onions, old newspapers,
magazines, anything.
• He set-up his first
company, American-Asia
Trading, first ukay-ukay
dealer in the country
• He saw business
opportunities during the
war instead of problems
and difficulties
OPPORTUNITYAMIDST
DESPAIR

25. • In 1956, Philippine President Elpidio
Quirino Jr. changed the economic
policy of the country. He increased
tariffs and imposed import controls on
goods to encourage local businesses.
With this, John decided to manufacture
cornstarch. From it, the Universal
Robina Corporation was born.
• China Bank provided him with a
character loan of P500,000.
“I know a good man when I saw one—Dr. SyCip [Chair-
Chinabank]
THE BIRTH OF
MANUFACTURING BUSINESS

26. THE AGE OF BRANDS
• In 1957, he established Universal Corn
Products
• He had competitors like Procter and
Gamble and Nestle
• He established CFC (Blend 45) and
positioned it as “the poor man’s
coffee”.
• He established the JG Summit
Holdings which was also expanded
overseas
• JG purchased 23% of United Industrial
Corporation of Singapore
“If they can make a lot of money, so can I”

27. THE AGE OF BRANDS
• Gokongwei advised his brother James to study in
America and earned the degree in chemical
engineering.
• His brother returned to the Philippines and
together they expanded into new business
ventures (Noodles, Cookies and Crackers).
• JG Summit grew to $135 million by 1993, and when
listed in the PSE, and then $1.8 billion in its 50th
anniversary in 2007.

28. COMPANIES THAT
GOKONGWEI BUILT
COMPANIES THAT
GOKONGWEI ACQUIRED
FOOD: The Universal Robina
Corporation TEXTILE: Litton Mills
RETAIL: Robinsons Retail Group
POWER GENERATION: First Philippine
Power Corporation and Toledo
Power Corp.
PROPERTY AND HOTEL MANAGEMENT:
Robinsons Land Corporation
TELECOMMUNICATIONS: Digital
Telecommunications Philippines, Inc.
PETROCHEMICALS: JG Summit
Petrochemical Corporation AVIATION: Cebu Pacific Air
FINANCIAL SERVICES: Capital and
Financial Services Group BANKING: FEBTC and PCI
DOMESTIC EXPANSIONS:
1970-1999

29. GLOBALIZATION: 2000s
 John Gokongwei Jr. wanted the Universal Robina
Corporation to be a truly Philippine-based
multinational company.
 From 2000 to 2004, the Universal Robina Corporation
International Group expanded its markets in
Thailand, Indonesia, Malaysia, China, Singapore,
Hong Kong and Vietnam.

30. THE GOKONGWEI
ENTERPRISE TODAY

31. CHANGE IS
INEVITABLE
AND
FLEXIBILITY IS
THE KEY

32. PERSONAL STAKES IN
THE COMPANY
ENCOURAGE EVERYONE
TO WORK HARD

33. MISTAKES AND
DISAPPOINTMENTS ARE
INEVITABLE

34. GOOD
BRAND
EQUALS
REPUTATION

35. FAMILY SUPPORT IS
CRUCIAL

36. PAUSING TO
RECHARGE BRINGS
NEW VIGOR

37. READING AND
TRAVELING ENRICHES
ONE’S MIND

38. Chairmannd CEO: LEHMAN BROTHERS
Salary: $22,030,534 (2007)
Net Worth: US$ 100 million (est.)
RICHARD “DICK” S.
FULD JR.

39. • He began his career in 1969, the year the
firm’s senior partner Robert Lehman
died, and stayed at the company until its
bankruptcy.
• He began as a commercial paper traded
and rose rapidly
RICHARD “DICK” S.
FULD JR.

40. • He served as CEO from 1994 through the
firm’s collapse in 2008. Fuld was the longest-
tenured CEO on Wall Street at the time of
the financial crisis of 2008.
• Fuld had handled Lehman through the 1997
Asian financial crisis, a period where the
firm’s share price dropped to $22 in 1998.
• Lehman had a yearly loss of $102 million in
1993, but after Fuld became CEO the firm had
fourteen straight years of profits including
one of $4.2 billion in 2007, although in 2008 it
reported a Q2 loss of $2.8 billion and filed
bankruptcy later that year.
CHIEF EXECUTIVE
OFFICER

41. • Similar to the fall of Barings Bank this
was accomplished by driving up
company earnings through excessive
leverage and risk.
• Fuld underestimated the downturn in the
US housing market and its effect on
Lehman’s mortgage bond underwriting
business.
• Fuld was criticized for not completing
proposed deals, either a capital injection
or a merger, that would have saved
Lehman Brothers from bankruptcy (from
Warren Buffet and Korea Development
Bank)
LEHMAN’S
BANKRUPTCY

42. • Lehman borrowed significant amounts to
fund its investing (known as leveraging
or gearing)
• Leverage ratio = 24 : 1 in 2003 and 31 : 1
by 2007 (Assets/Equity)
• Whiel generating tremendous profits
during the boom, this vulnerable position
meant the just 3-4% decline in the value of
its assets would entirely eliminate its
book value of equity.
• In August 2007, Lehman closes its
subprime lender, BNC Mortgage
eliminating 1,200 positions.
EXPOSURE TO THE
MORTGATE MARKET

43. • In 2008, Lehman faced an unprecedented
loss due to continuing subprime
mortgage crisis. Lehman’s loss was
apparently held on to large positions in
subprime and other lower-rated
mortgage trances when securitizing the
underlying mortgages.
• Huge losses accrued in lower-rated
mortgage backed securities throughout
2008. Lehman reported losses and
decided to raise $6 billion in additional
capital
• Lehman stock lost 73% of its value as the
credit market continued to tighten.
LEHMAN’S FINAL
MONTHS

44. • Lehman Brothers filed fo Chapter 11
bankruptcy protection on September 15, 2008.
• JPMorgan Chase & Co. provided Lehman
Brothers with a total of $138 billion in
“Federal Reserved backed advances.”
• Barclays acquired core business of Lehman
brothers.
• Nomura Holdings, Inc. announced it agreed
to acquire Lehman Brothers’ franchise in the
Asia Pacific Region including Japan, Hong
Kong and Australia and also the investment
banking and equities businesses in Europe
and Middle East.
LEHMAN’S FINAL
MONTHS

45. • Dow Jones closed down 500 points (-4.4%),
the largest drop in a single day.
• Lehman Brother’s bankruptcy caused
depreciation in the price of commercial
real estate.
• Apartment-building investors felt
pressured to sell as Lehman unloads its
debt and equities.
• Effects to global financial system and
investments.
IMPACT OF
BANKRUPTCY FILING

46. • Lehman Brothers was questioned: “Your
company is now bankrupt, our economy
is in crisis, but you get to pay much. I
have a very basic question for you, is
this fair?
• Fuld received nearly half a billion dollars
in total compensation from 1993 to 2007. in
2007, he was paid a total of $22,030,534
which included a base salary of $750,000, a
cash bonus of $4,250,000, and stock grants
of $16,877,365.
FULD’S
COMPENSATION

47. • The New York attorney general filed
charges against the bank’s auditors Ernst
& Young in December 2010, alleging that
the firm “substantially
assisted….massive accounting fraud”.
ACCOUNTING
MANIPULATION

48. DOUMO ARIGATOU GOZAIMASU…
XIE XIE…
MUCHAS GRACIAS…
MERCI BEAUCOUP….