3-cornered fight seen for PSE chairmanship

Stockbrokers expect one of the hottest Philippine Stock Exchange (PSE) elections on March 13, with old rivals vying for limited slates in the PSE’s 15-member board of directors.

Based on the final list submitted by the local bourse to the Securities and Exchange Commission (SEC), 20 stockbrokers will vie for the seven seats reserved for broker-directors in the PSE board.

Of the 20, incumbent PSE chairwoman Alicia Arroyo and veteran stockbrokers Robert Coyiuto and Vivian Yuchengco are gunning for the chairmanship of the exchange.

Arroyo said she was running anew in order to pursue reforms that have been initiated under her administration.

Coyiuto, the first exchange president under the unified Makati and Manila Stock Exchange in 1994, is currently a director of the PSE. He is the president of local broker firm R. Coyiuto Securities Inc.

On the other hand, Yuchengco, who backed Arroyo during last year’s PSE elections, is the first woman chairman of the PSE after its conversion into a stock and profit corporation as mandated under the Securities Regulation Code.

Running with Coyiuto for PSE director are Felipe Yap of F.Yap Securities, Eddie Gobing of Lucky Securities, Francis Chua, Edwin Luy of Triton Securities, Filomeno Francisco of AB Capital Securities, Ismael Cruz, former PSE chair Trinidad Kalaw (First Orient Securities) and Joey Roxas of Eagle Equities.

Arroyo’s slate, on the other hand, include incumbent director Marita Limlingan, Paul Wee of Capital Equities, Nestor Aguila of DA Market Securities, and Ma. Erlinda Mañalac of First Integrated Capital Securities.

Others qualified to run in next month’s elections and are reportedly supporting Yuchengco’s bid for PSE chairmanship are William Ang, Myron Timothy Papa, Joseph Madrid, Francisco Villaroman, and Robrina Go.

Filling in the eight non-broker director slots of the PSE board are Cayetano Paderangga as president, Franciso Lim (independent), Peter Favila (independent), Benjamin Punongbayan (independent), Ramon Ang (sectoral), Winston Garcia (sectoral), Enrique Aboitiz Jr. (sectoral), and Annabelle Chua (sectoral).

Commenting on the appointment of non-broker directors, a source identified with the Coyiuto Group said: "This is pretty much the same as last year. They will again stack the board with their own people."

When asked if they would contest the composition of the non-broker directors, the source said they have already asked their lawyers to evaluate available options.

The Coyiuto group had nominated Omar Cruz and Napoleon Rama for the non-broker director positions.

Over the last two years, the PSE elections has been marred by controversies on the election of non-broker directors who hold majority of the board. The non-broker directors are crucial in the election of the PSE chair.

Under the circular issued by the SEC in 2002, no independent director should be allowed to solicit votes for himself or be subject to an election by stockholders.

Based on the PSE nomination and election rules, the non-broker director shall not have been associated with any broker, dealer or member of the exchange for a period of two years prior to his or her election.