Succession

It’s amazing really how truth imitates fiction in many ways.

We’ve heard for instance that the story of the sprawling global empire of Rupert Murdoch, said to be the real life inspiration for the now concluded gripping HBO series Succession, has reached its finale as the 92-year old media mogul stepped down as chairman of both $15-billion Fox and $12-billion News Corp. and is now chairman emeritus.

Here in the Philippines, the Tan empire, which may as well be the local version of the series, is also having its own finale of sorts.

In a significant move, taipan Lucio Tan, known to many as Kapitan, has also taken on the role of chairman emeritus at his Philippine National Bank, one of the country’s biggest banks.

His wife Carmen Tan has been appointed as a Board Advisor. Both patriarch and wife stepped down as directors.

What does this mean, really?

For one, it is quite a significant change because this is the first time that Kapitan, 89, has taken the role of chairman emeritus, at least in his listed companies. A quick check with the Philippine Stock Exchange showed that he is still chairman and CEO of PAL Holdings, LT Group Inc. and MacroAsia as I write this.

Kapitan gave his assurance to PNB’s stakeholders. “As I assume the role of chairman emeritus, I would like to personally assure our customers, shareholders, investors and employees that the Tan family will continue to be a major shareholder of PNB. We remain strongly committed to supporting the bank and its future.”

PNB also said that as part of a broader strategic restructuring, its board appointed banker Chester Luy and lawyer Eusebio Tan.

“These strategic appointments reflect PNB’s commitment to its long-term objectives and its focus on ensuring sustained profitability under the guidance of a seasoned and professional leadership team,” Kapitan said in a statement issued by PNB.

Luy has extensive background in senior leadership roles at JPMorgan, Bank of America Merrill Lynch, Barclays Capital, HSBC, Julius Baer, Bank of Singapore, RCBC and PNB while Atty. Tan was the managing director of ACCRALAW, where he currently serves as Senior Counsel. His areas of expertise include corporate law, banking and finance, etc.

‘Observed trends’

The decision to introduce Luy and Atty. Tan into PNB’s Board represents a shift toward reinforcing strong leadership support for member companies of the Lucio Tan Group, aligning with observed trends in recent years, PNB also said.

Similar developments have been evident within Philippine Airlines, coinciding with the appointments of Lucio Tan III as the new president and COO of LTG and his brother Kyle Tan as president of Eton Properties. Lucio III and Kyle are sons of the late Lucio “Bong” Tan Jr.

Evolving financial landscape

PNB president Florido Casuela said it’s also part of the bank’s commitment to adapt to “an ever-evolving financial landscape.”

“It’s a move that underscores PNB’s commitment to adapting and thriving in an ever-evolving financial landscape. I am confident that having directors Luy and Tan in our Board further strengthens our roster of leaders,” Casuela said.

He said the changes in the board’s composition in PNB will not affect the bank’s strategic direction.

PNB is one of the country’s oldest banks. It is now in its 107th year of serving Filipinos.

Moving forward, the bank assured stakeholders that the PNB Board and the management team shall work together to continue PNB’s legacy of being a reliable financial partner of Filipinos here and abroad.

PNB acknowledged Kapitan’s over 20 years of stewardship in the bank.

“His tenure was marked by several milestones, including the successful completion of the PNB-Allied Bank merger in 2013, a significant achievement that solidified PNB’s position as one of the nation’s foremost privately-owned commercial banks. Under his visionary guidance, PNB expanded its global presence, serving the financial needs of millions of overseas Filipinos.”

Observers in the banking industry said the move also means reducing Tan family members in the board of PNB, which may bode well for regulatory purposes.

We have yet to see what happens next. Will it be more than just a retirement honorific as Reuters noted in the case of Rupert Murdoch’s succession story?

Or is Kapitan now really just focused on enjoying his sunset years, trusting his third generation to bring his empire to the next era?

He has not been seen much in public but I heard he has been traveling to Hong Kong for both leisure, care and a bit of business perhaps.

Finale

Emeritus comes from the Latin meaning earned or merited and this chairman emeritus surely earned his retirement.

Years ago, when asked about his successor, he said, seemingly half serious and half joking, that he would just sell everything.

That’s not what’s happening so he must have been kidding. What is clear is that the finale in his succession story has been playing in slow motion for years now.

What will we see before and after the credits roll out? Will it be like a Marvel movie ending with an unexpected final scene, post-credits or will it have a finale like that of a musical piece – say similar to Beethoven’s Symphony No. 9 which has a rousing chorus and a solo vocal quartet? Or will it have a jaw-dropping ending like HBO’s Succession? Only time will tell.

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Email: [email protected]. Follow her on Twitter @eyesgonzales. Column archives at EyesWideOpen on Facebook.