Two outstanding CEOs as role models

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Just one day apart in early October, the Philippine business community lost two outstanding CEOs who spent their entire professional lives building strong institutions in the private sector. Today, more than ever, the private sector should take the lead in constructing a just and progressive society. While we should not give up hope on achieving the necessary governance reforms in the public sector, it is more probable that outstanding leaders in the private sector—business, academe, and civil society—will be at the forefront of achieving First World status for the Philippines in the next ten to fifteen years. After all, the Government accounts for only 10 percent of GDP; private consumption and investment account for the remaining 90 percent, with consumption alone accounting for 75 percent. We should not despair if it is taking us a long time to clean up our dysfunctional government.

I would like to describe the accomplishments of the two CEOs, Mr. Xavier Loinaz and Mr. Oscar Reyes, who passed away during the first week of October 2025. I had the fortune of working closely with them when I served on the boards of directors of the corporations they led: Bank of the Philippines Islands in the case of Mr. Loinaz and Shell Philippines in the case of Mr. Reyes. They shared the qualities of an effective leader, but they had very different personalities. Xavier was a no-nonsense, hard-driving executive who always called a spade a spade. Oscar was a soft-spoken, consensus-seeking manager who led by example.

Before I describe the two of them as role models of outstanding CEOs, let me quote from an article I received from Mr. Ray Canilao, Founder and CEO of an executive recruiting firm called Global Executive Solutions Group (GESG). In an article celebrating the 20th year of GESG, Mr. Canilao stressed that great corporate leadership not only guides a company but also contributes to a nation’s economic development, as well as cultural and social progress. A great corporate leader has a vision for the future that drives not just a single organization but also sustainable growth and stability for the country.

The impact of leadership can be seen across three levels: 1) Organization: where leaders ensure self-sufficiency, resilience, and long-term growth; 2) Industry: where strong leadership raises standards, spurs innovation, and encourages healthy competition; and 3) Economy: where leadership decisions create jobs, attract global investments, and drive sector expansion. As the Philippine economy makes the transition from a low-middle income to a high-middle income economy and eventually to a high-income economy in the next 10 to 15 years, its competitive advantage in the global economy will rest on the quality of its leaders. As Mr. Canilao stressed, "Leaders should always be strong, but with compassion, empathy, and integrity. Integrity is a core value and foundation of our work in executive search."

I joined the board of BPI in 1981 at the invitation of the late Enrique Zobel. Xavier was appointed President and CEO in 1982, and shortly thereafter BPI became a universal bank. I saw him launch innovative ways to make financial services more accessible to Filipinos, introducing the ATM in the 1980s and internet banking in 1999, ahead of most banks. During the political upheavals that led to the EDSA revolution in 1986 and the East Asian financial crisis a decade later, he and his team managed to keep BPI growing steadily. During this volatile period, he also led the bank’s landmark acquisitions and helped usher in the era of bancassurance in the Philippines at the turn of the millennium.

Here are words from a published testimonial from his employer, the Ayala Corporation: "As a leader, he put the customer first. He believed that banking is not a business 'that you can build walls and barriers around.' He said banks should serve customers 'anytime, anywhere, on a 24-hour basis.' Even after his retirement in 2004, he made sure to spend time mentoring the next generation of BPI bankers in his capacity as a member of the board of directors. He richly deserved the praises heaped on him by his colleagues at BPI after his passing: 'XP, you are a timeless example of integrity, excellence, and quiet strength. Your legacy is larger than life. Your memory will live on in the many lives you touched.' And may I add, 'Including my own life.'"

The other role model for CEOs I would like to cite in this article is Oscar S. Reyes, who passed away last October 3, 2025, at the age of 79. He served as Country Chairman of Shell companies in the Philippines and President of Pilipinas Shell Petroleum Corporation from 1997 to 2001. I worked closely with him on the board of trustees of Pilipinas Foundation. In all these positions, he left a lasting positive impact through his visionary leadership, manifesting the outstanding qualities of a CEO that we enumerated at the beginning of this article. Beyond his business leadership, he was also a steadfast advocate of Shell Club 15 and is remembered for his generosity and the legacy of service, kindness, and compassion he shared with Shell retirees.

Although I did not overlap with him during my earlier engagement with Meralco in the last century (1972 to 1992), he was also well remembered by his colleagues at this power company, where he served as President and CEO from 2012 to 2019. Let me quote from an In Memoriam article written by Lisbet Esmael in the Inquirer: "The local energy sector is grieving the loss of Reyes, whose decades-long service helped shape the market. The country’s biggest power distributor, Manila Electric Co. (Meralco) highlights Reyes’ steadfast and humble leadership in driving efforts to expand electricity access to every home, even beyond the group’s franchise area."

"With strategic foresight and prudence, he guided Meralco, laid the groundwork for modernization while ensuring regulatory compliance, operational integrity, and execution excellence...True to his philosophy of sweating the assets, he maximized value for customers and stakeholders alike."

Reflecting on the outstanding examples of these two giants in the Philippine business world—especially their examples of integrity and concern for the common good of society—we can avoid pessimism and despair about the future of the Philippine economy, which might otherwise result from the ongoing scandals of corrupt practices in some branches of Government in collusion with dishonest private contractors. Parallel to ongoing efforts to send to jail the guilty legislators, Department of Public Works executives, and corrupt contractors, we should also highlight the fact that the private business sector possesses personalities like Xavier P. Loinaz and Oscar S. Reyes, who are role models in integrity, competence, and concern for the common good. As a result of the laudable efforts of these two business luminaries to mentor the new generation of Filipino executives, we can rest assured that their tribe will increase.