An emotional changing of the guard at Ayala

this story was taken from www.inq7money.net

URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=08&file=4





An emotional changing of the guard at Ayala
Posted: 1:58 AM | Apr. 08, 2006
Elizabeth L. Sanchez
Inquirer

AN EMOTIONAL changing of the guard marked this year's annual meeting of stockholders of Ayala Corp., the Philippines' oldest business house.

Jaime Zobel de Ayala, 71, announced to stockholders his retirement from the company he had helped build over 49 years.

Zobel de Ayala, whom Forbes magazine values at $1.3 billion, was applauded twice during the meeting. The first, for almost half a minute, came after his brief speech. The second was a standing ovation after a film clip that showcased his achievements in the company.

He said in his speech: "As a 172-year-old company, Ayala continues to grow, and will continue to be dynamic and ever faithful to its traditional values and principles, ever conscious of its role in economic development, and its obligation to contribute to the betterment of the quality of life for the Filipino."

"I am presiding over Ayala's annual general meeting for the 23rd and last time," he said. "As I look back on all these years, I reminisce about the decisions I had to make at crucial times. No doubt, I have had my share of triumphs and disappointments but, on the balance, the overall experience has been gratifying and rewarding. It has been an immensely fulfilling professional life."

He dodged questions on what he planned to do during his retirement, saying, "That's my secret."

Shareholders prevailed on him to stay on as chairman emeritus, an honorary position that will allow him to remain as the company's guiding force.

Shareholders saw his retirement as ushering a "new order" led by his sons at the conglomerate.

As widely expected, the board of directors elected Zobel de Ayala's eldest son Jaime Augusto, erstwhile president and chief executive officer, as chairman and chief executive officer.

Younger brother Fernando, erstwhile co-vice chairman and executive managing director, was elected president and chief operating officer.

Former Bank of the Philippine Islands president Xavier Loinaz was elected to fill up the vacancy left by Zobel de Ayala on the seven-member Ayala Corp. board.

Jaime Augusto Zobel de Ayala stressed that no radical changes would be made in the company, but said Ayala Corp. "will continue to reinvent itself and continue to take advantage of opportunities in the country."

Ayala Corp. will explore opportunities in three sectors -- services, such as business process outsourcing, contact centers, healthcare management, finance and administrative work, and human resources; privatization opportunities in power, transmission and distribution and other infrastructure; and investment in specialized funds.

This year, the company is pumping in P40 billion in capital spending for projects, bulk of which will go to the rollout of third-generation, or 3G, services of Globe Telecom Inc. and property projects of Ayala Land Inc. With INQ7.net