Ayala Firms Top List of Corporate Governance Leaders

August 18, 2008

The Ayala Group’s embrace of good corporate governance has won it further accolades.

Except for telecommunications giant Philippine Long Distance Telephone Co., four out of the top five companies with the highest corporate governance scores among listed companies comprised the Ayala Group — Ayala Corp. (one of the oldest highly diversified conglomerates in the country) and its subsidiaries Ayala Land, Bank of the Philippine Islands and Globe Telecom.

Rounding out the top 10 companies that secured honors for corporate governance is Ayala-led utility firm Manila Water Co.

The survey, which covered 135 publicly-listed companies, is a joint undertaking between the Institute of Corporate Directors, the Securities and Exchange Commission and the Philippine Stock Exchange.

In the 2007 Corporate Governance Scorecard, the top five companies had an average score of 94 percent while the next five had an average score of 90 percent.

“The Ayala Group is very close to perfect. They continue to improve their corporate governance year after year,” said ICD chairman Jesus P. Estanislao.

Estanislao said the average score for listed companies covered by the survey was 65 percent. The telecommunications sector reaped the highest scores in terms of corporate governance.

The survey is based on five internationally recognized corporate governance principles namely, shareholder rights, shareholder equity, roles of stakeholders, disclosure and transparency and board responsibilities.

“In other words, the level of corporate governance practice among the best governed publicly listed companies in the Philippines is already at par with the best in East Asia, which happens to be the region with the best record of improvement in this regard,” Estanislao said.

Ayala Corp. chief executive officer Jaime Zobel De Ayala II has pointed out that taking steps to improve governance has a long-term, positive impact on a firm’s bottom line and winning investor confidence.

Source: Ayala Land Inc. Article Listing

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