No rule preventing non-broker from becoming PSE chairman — SEC official

The Securities and Exchange Commission (SEC) said an outsider or non-broker could qualify as chairman of the Philippine Stock Exchange (PSE).

An SEC official pointed out the possibility that the next PSE chairman could be an independent director, noting that no rule or law prohibits an outsider from sitting as chairman of the exchange.

"If you look at the rules, you will find nothing that says the PSE chair should be a broker. With the board controlled by non-broker directors, we’ll never know.

They might after all decide to elect someone from their group to ensure peace and order among PSE directors," the SEC official said.

One broker, however, raised a howl over the idea, saying it doesn’t seem right. "I don’t think this is fair. Why else would you need an outsider to head the exchange when there is a non-broker president who could do that for you. This is absolutely ridiculous. The chairman should still come from the stockbrokering industry," the broker said.

Over the last two years, the exchange has been marred by controversies on the election of the PSE chair and non-broker directors as well. The non-broker directors are crucial in the election of the PSE chair.

In the past, some broker directors would not attend meetings called by the board due to their differences with the chairman. This has made it difficult for the board to muster the needed quorum for a meeting.

In the meantime, the long-standing rivalry between veteran stockbrokers Robert Coyiuto and Vivian Yuchengco is expected to heat up anew as they vie for the chairmanship of the exchange in this year’s annual elections scheduled on March 13.

In a three-cornered fight, joining the race for chairmanship of the exchange is incumbent PSE chairman Alicia Arroyo, who has vowed to continue reforms 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.

Based on the final list submitted by the bourse to the SEC, 20 stockbrokers will battle for the seven seats reserved for broker-directors in the PSE board. The remaining eight seats are held by non-broker directors.

Running with Coyiuto for PSE directors are former PSE chairman 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, another former PSE chairperson Trinidad Kalaw of 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 Paderanga 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).