JAZA, Fernando take the helm

The board of directors of Ayala Corp. elected Jaime Augusto Zobel de Ayala II yesterday as the company’s new chairman and chief executive officer, replacing his father Jaime Zobel de Ayala who retired after serving the firm as chairman since 1984.

Fernando Zobel de Ayala, who is currently executive managing director, assumes the role of president and chief operating officer of Ayala Corp.

Don Jaime was designated chairman emeritus of Ayala Corp., a new position, and will continue to serve as chairman of Ayala Foundation.

"Given his many years at Ayala, we are delighted that he will continue to be part of our community in this honorary capacity. As you all know, he continues to chair the board of Mermac, our family holding company, which remains a major stockholder of Ayala Corp.," Jaime Augusto or JAZA said.

JAZA, 47-year-old, has served as director of Ayala since 1987. Prior to his election as chairman and CEO, he was president and CEO of the company, co vice-chairman of the board, and member of the executive and management committees. He is currently chairman of Globe Telecom, the Bank of Philippine Islands, and Integrated Microelectronics Inc. He holds a BA degree in economics (cum laude) from Harvard College and an MBA from the Harvard Graduate School of Business Administration.

His brother Fernando, 46, has also served as company director since 1994. Before his appointment as president and COO, he was co vice-chairman of the board, executive managing director. He also holds the positions of chairman of the board of Ayala Land, Manila Water Co., Ayala International, AC International Finance, Ayala Automotive, Alabang Commercial Corp., and Roxas Land Corp. Fernando holds a BA degree in liberal arts from Harvard College and a Certificate of International Management from INSEAD, France.

JAZA assured the company’s managers and staff that while these are major changes, "Fernando and I will work out the transition in a way that will ensure the continuity of ongoing work as well as existing policies and processes. We will continue to act in unison and decide in tandem on policy issues and concerns affecting the company and its subsidiaries."

He added: "We will continue to work as a team, as we had done in the past, to insure the stability of the company and pursue its continuous need to create value in the face of the challenges that we are confronting both internally and externally."

Of his father, JAZA, the eldest of seven children of Don Jaime and Bea Zobel, emphasized: "We are grateful for the many years of service rendered by our chairman these past 50 years. He has led Ayala through many challenging times and has played a critical role in shaping our businesses and preparing these for new opportunities and challenges in the coming years."

Since Don Jaime took over the helm as president of the company in 1984 to replace his cousin (the late Enrique Zobel), consolidated assets have grown from P4.2 billion to P173 billion and consolidated net income from P349 million to over P8 billion today. Over the same period, the company’s market capitalization has also increased from to over P120 billion. JAZA took over as president of Ayala Corp. in 1993.

Xavier Loinaz, former president of the Bank of the Philippine Islands, was also elected to the seven-man board of directors of Ayala Corp., filling the vacancy left by Don Jaime. "We welcome Mr. Loinaz to the board. His extensive experience in the banking industry, his exacting standards, and recognized understanding of the economic and business environment will certainly add value to the governance of the group," JAZA commented.

Looking forward, JAZA expects the growth momentum of their key operating subsidiaries to follow through in 2006. " Our telecom, property, and banking subsidiaries will continue to be the main drivers of the group as they benefit from an improved macro situation. Buoyant consumer demand and improved buyer confidence underpinned by strong overseas remittances will continue to fuel growth," he said.

He added: " But certainly, the year will not be without challenges. Heightened competition across industries and exogenous factors (i.e. high oil prices, political shocks) may pose some difficulty but we remain confident that given the leadership stance of our subsidiaries in their respective industries, we are well positioned to overcome these and deliver the growth trajectory we have seen in the past few years."