2 months ago
16
IN today's evolving corporate landscape, meritocracy is advancing as an indicator of effective governance, with a focus on qualifications, expertise, and independent judgment to propel organizations forward and drive growth from the boardroom.
The adoption of frameworks such as merit, excellence and intelligence (MEI) in other parts of the world exemplifies the growing emphasis on ensuring that board members bring meaningful contributions to their roles.
At SM Investments Corp. (SMIC), this principle is illustrated as told from the lens of its independent directors.
Tomasa "Tammy" Lipana, independent director and chairman of SMIC's audit committee, highlights the importance of qualifications.
"You need to look at qualifications. A board member should add to the company's reputation, which is crucial for investors and other stakeholders," she asserted.
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This sentiment is echoed by lawyer Lily Gruba, an independent director of SMIC, who points to the natural diversity within the board as a product and clear indication of a healthy meritocracy.
"Ideally, the perfect meritocracy is blind to and independent of issues of gender, background and race, at least where it is not relevant. This is the next level to aspire for in any organization — that it is composed of persons of merit, not just a collection of diverse personalities," she said.
A landmark decision in 2024 saw the appointment of Amando Tetangco Jr., former governor of the Bangko Sentral ng Pilipinas, as chairman of the board — the first independent director to hold this position in SM's history.
Over 50 percent of SM's board seats are held by independent directors, exceeding regulatory standards and setting an industry benchmark.
Completing SM's distinguished roster of independent board directors are Ramon Lopez, former secretary of the Department of Trade and Industry, and Robert Vergara, who previously served as the president and general manager and vice chairman of the board of trustees of the Government Service Insurance System.
Visit www.sminvestments.com for more information or contact [email protected] for inquiries.
