Meritocracy is advancing as an indicator of effective governance in today’s evolving corporate landscape, with a focus on qualifications, expertise and independent judgment to propel organizations forward and drive growth from the boardroom.
The adoption of frameworks such as merit, excellence and intelligence (MEI) in other parts of the world exemplifies the growing emphasis on ensuring that board members bring meaningful contributions to their roles.
At SM Investments Corp. this principle is illustrated as told from the lens of its independent directors. Tomasa Lipana, independent director and chairperson of SM Investments’ audit committee, highlights the importance of qualifications.
“You need to look at qualifications. A board member should add to the company’s reputation which is crucial for investors and other stakeholders,” he said.
This sentiment is echoed by lawyer Lily Gruba, independent director of SM Investments, who points to the natural diversity within the board as a product and clear indication of a healthy meritocracy.
“Ideally, the perfect meritocracy is blind to and independent of issues of gender, background, and race, at least where it is not relevant. This is the next level to aspire for in any organization—that it is composed of persons of merit, not just a collection of diverse personalities,” she said.
SM’s governance framework exemplifies its commitment to professionalization, accountability, integrity, fairness, sustainability and transparency. The company has been raising the bar on corporate governance by promoting independent judgment and fostering leadership that aligns with the highest standards.
A landmark decision in 2023 saw the appointment of Amando Tetangco, Jr., former governor of the Bangko Sentral ng Pilipinas as chairman of the board—the first independent director to hold this position in SM’s history.
This underscores the company’s prioritization of expertise, professionalism and the value of independent leadership in shaping its future.
Over 50 percent of SM’s board seats are held by independent directors, exceeding regulatory standards and setting an industry benchmark.
Two of these directors are women known for their expertise in taxation and corporate law, mergers and acquisitions, audit and accounting, to name a few, highlighting a balance between diversity and merit.
Independent directors also lead key committees, including audit, corporate governance and sustainability, related party transactions, and risk management, further ensuring objective independent judgment on corporate affairs.
Completing SM’s distinguished roster of independent board directors are Ramon Lopez, former Secretary of the Department of Trade and Industry (DTI) and Robert Vergara who previously served as the president and general manager and vice-chairman of the board of trustees of the Government Service Insurance System (GSIS).
These initiatives reflect a commitment to fostering performance and competence, while upholding high governance standards, meeting investor expectations and societal demands and helping drive inclusive growth.
