In today’s dynamic business environment, the emphasis on meritocracy as a cornerstone of effective governance is gaining momentum. By prioritizing qualifications, expertise, and independent judgment, organizations are better positioned to foster growth and leadership at the highest levels.
SM Investments Corp., the listed investment holding company of the Sy Group, stands out as a prime example of this shift, demonstrating how a robust meritocratic framework can elevate corporate governance and decision-making from the boardroom.
The growing trend of integrating frameworks like Merit, Excellence, and Intelligence (MEI) globally underscores the importance of having qualified and capable board members who can make meaningful contributions. At SM Investments, this philosophy is exemplified by the insights of its independent directors.
Tomasa “Tammy” Lipana, Independent Director and Chairperson of the Audit Committee, underscored the value of qualifications: “A board member should add to the company’s reputation, which is crucial for investors and other stakeholders.”
This belief is reflected across the SM Investment’s governance structure.
Atty. Lily Gruba, another independent director, highlights the natural diversity within the SM board as a sign of a thriving meritocracy. “The ideal meritocracy is blind to issues like gender, background, and race, focusing solely on merit,” she states. “A board should consist of individuals of substance, not just diverse personalities.” This commitment to merit ensures that the board’s composition fosters both innovation and high standards of accountability.
SM Investments has continuously set the bar for corporate governance. In 2023, the company made history with the appointment of Amando M. Tetangco, Jr., former Governor of the Bangko Sentral ng Pilipinas, as the first independent chairman of the board. This landmark decision underscores the company’s commitment to professional expertise, independent leadership, and the highest standards of governance.
With over 50 percent of its board seats held by independent directors—exceeding regulatory requirements—SM has set a new benchmark for the industry. Key independent directors bring extensive expertise in areas such as taxation, corporate law, mergers and acquisitions, and risk management. Moreover, independent directors lead crucial committees such as Audit, Corporate Governance and Sustainability, and Risk Management, ensuring objective oversight of corporate affairs.
This meritocratic approach also embraces gender diversity, with female independent directors playing significant roles in shaping the company’s strategic direction. Among the distinguished independent board members are Ramon M. Lopez, former Secretary of the Department of Trade and Industry, and Robert G. Vergara, former President and General Manager of the Government Service Insurance System.
Through these initiatives, SM Investments is reinforcing its dedication to fostering a culture of competence, integrity, and sustainability, meeting both investor expectations and societal demands while driving inclusive growth.
