MANILA, Philippines - Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV) is not letting its president and chief executive officer Erramon I. Aboitiz go anytime soon despite his scheduled retirement by 2016.
In a disclosure to the stock exchange, AEV said its board of directors decided to defer the retirement of Aboitiz and instead resolved to extend his employment to Dec. 31, 2019.
AEV said the decision to extend Aboitiz’s term is in line with the significant growth the company, its subsidiaries and affiliates have seen over the past few years as well as for “the further growth aspirations of the Aboitiz Group.”
“The AEV board is committed to ensuring that the Aboitiz Group’s long-term goals are successfully attained,” the conglomerate said.
Aboitiz is supposed to step down and retire in 2016. He has been at the helm of AEV since 2009.
“The extension of Mr. Aboitiz’s employment was made to ensure a smoother transition of leadership and the continued execution of the group’s initiatives to achieve its long-term strategic plans,” AEV said.
“The board is confident that in a few years, the organization will be ready for a smooth transfer of leadership to continue executing the group’s strategic initiatives,” it added.
AEV serves as the Aboitiz family’s holding firm. The firm holds interests in various businesses such as power generation and distribution through Aboitiz Power Corp., banking (Union Bank), property (Aboitiz Land Inc.), and food (Pilmico Foods Corp.).
AEV’s net income in the first nine months this year dropped 14 percent year-on-year as higher earnings from food and real estate business units failed to offset an un-energized power operations and weak banking business.