ELECTRIC WIRES AND CABLE SPAGHETTIS

NO DOUBT, THE MANILA ELECTRIC  COMPANY (MERALCO) IS THE GIANT AND MEGA-BUCKS COMPANY WHEN IT COMES TO POWER DISTRIBUTION BUSINESS.

THE MANILA ELECTRIC COMPANY  (MERALCO) POSTED A LOWER INCOME THIS YEAR ACCORDING TO THE REPORT OF PHILSTAR GLOBAL.

MERALCO CHIEF FINANCE OFFICER SAID THE COMPANY'S CORE NET INCOME DECLINED 3% FROM P10.4 BILLION IN THE FIRST SIX MONTHS OF 2016 TO P10.1 BILLION THIS YEAR. 



IN A SEPARATE NEWS FROM THE MANILA TIMES, MERALCO'S TOP 5 EXECUTIVES GETS P92.4 MILLION EACH IN 2016. 

THEREFORE, IT MEANS THAT MANILA ELECTRIC COMPANY (MERALCO) IS DOING GREAT BUSINESS AND WAS REMAIN UNCHALLENGED BY OTHER PLAYERS IN POWER DISTRIBUTION. 

HOWEVER, IF YOU LOOK AT THESE PICTURES, IT SEEMS THAT MERALCO IS NOT CONCERNED WITH THE SAFETY OF THE PEOPLE BY IGNORING SPAGHETTI ELECTRIC WIRES AND CABLES ALMOST EVERYWHERE IN THE 42 BARANGAYS OF QUEZON CITY. 

WHEN ELECTRIC CONSUMPTION WAS NOT PAID ON TIME, THEY ARE QUICK TO CUT YOUR ELECTRICITY AND RESTORED IT ONLY UPON THE PAYMENT OF YOUR ELECTRIC BILL. BUT THEY ARE BLIND TO SEE  AND SLOW TO REACT TO FIX POWER LINES LIKE THESE THAT POSE GREAT DANGER TO THE PUBLIC.

FOR THE BENEFIT OF THE READING PUBLIC AND THE LEADERSHIP OF THE MANILA ELECTRIC COMPANY I IMPORTED THIS ARTICLE FROM THE MANILA TIMES DATED MARCH 29, 2016.

Board pays

The members of Meralco’s board hold 13 meetings a year, including the annual gathering of stockholders. For their presence, they are entitled to an allowance of P120,000 for each meeting and P20,000 for every committee meeting.

In 2015, a Meralco compensation filing showed all 11 directors having received P16.76 million for board meetings and an annual meeting, and P2.36 million for committee meetings, for a total of P16.76 million. This would translate to P1.52 million each.

By the way, former Chief Justice Artemio Panganiban has successfully argued against the Securities and Exchange Commission (SEC) that he and other independent directors of all stock corporations are entitled to all the pay and perks due the regular directors.

To be fair to the board and in the spirit of transparency, Meralco detailed the pay of each of the company’s 11 directors as follows:

As Meralco’s only executive director, Oscar Reyes, president and chief executive officer, received P1.44 million in 2015. The others are Manuel Pangilinan, P1.48 million; Lance Gokongwei, P1.67 million; Manuel Lopez, P1.05 million; Ray Espinosa, P1.66 million; John Gokongwei J., P1.42 million; Jose Ma. Lim, P1.4 million; James Go, P1.71 million; and Napoleon Nazareno, P1.41 million. Meralco paid Panganiban and Pedro Roxas as independent directors P1.64 million and P1.88 million, respectively.

Executive compensation

Meralco’s generosity is not limited to the board even if some of them end up receiving more than others. Let us look at how well the company treats its management team.

Aside from Reyes, Meralco’s four other highest-paid executives are Alfredo Panlilio, Betty Siy-Yap, Ramon Segismundo, senior vice presidents; and William Pamintuan, first vice president.

As a group, Reyes and company would get this year salary of P155 million or P31 million each. It paid them as group salary of P144 million in 2015 and P133 million in 2014.

The average would be true if the amount would be distributed equally, which may not likely happen. It won’t be surprising if one or two or even three among the five would get even more than the others.

Here are the other details of Meralco’s compensation filing:

This year, the company will distribute P782 million as “performance-based pay,” of which P307 million will go the lucky five most highly-paid executives, or P61.4 million each, again, if evenly distributed. It said “all other key officers, other officers and directors as a group” will divide among themselves P475 million.

Meralco explained the big jump in such additional perk for its executives: 2015 happened to be the last year of the company’s 2013-2015 long-term incentive plan, which rewards deserving executives for a job well done. It paid the top five a “performance-based pay” of P58 million in 2015 and P52 million in 2014.

35 other managers

As of Dec. 31, 2015, Meralco listed 5,660 employees and 39 executives. The latter group consists of six senior vice presidents, six first vice presidents, 26 vice presidents and one corporate secretary.

Since four of these 39 managers are among the five highest-paid executives, the rest of the 35 managers should belong to “all other key officers” who may be entitled to “performance-based pay” of P475 million in 2016 and salary of P270 million.

Meralco paid the 35 managers as a group salary of P239 million and perks of P84 million in 2015, and P208 million and P78 million in salary and perks in 2014.

In the absence of details as to how much each of the lower-ranked managers stand to get in 2016 and were paid in 2015 and 2014, Due Diligencer has to resort to assumptions to give the readers of The Manila Times even a glimpse of estimates.

Assuming Meralco’s 11-person board would get P20 million in 2016, the remaining P455 million of the P475 million projected “performance-based pay” would entitle each of the 35 executives to P13 million each. Not bad for a year of loyal service to Meralco. But that would not be how the company would distribute the P455-million pie.

Rank-and-file workers

Incidentally or not, Meralco failed to disclose the salaries of its close to 6,000 workers, who toil hard every day. It did not say whether the benefits that the company provides its management team also trickles down to the rank-and-file workers.

Let us find the numbers for Meralco’s common workers.

Based on a consolidated financial filing, Meralco generated revenues of P258.4 billion in 2015; P266.3 billion in 2014; and P298.6 billion in 2013. Its “cost and expenses” amounted to P234.99 billion, P240.24 billion and P274.5 billion in each of the last three years.

Including other income and minus other expenses, Meralco reported net income of P19.2 billion in 2015; P18.13 billion in 2014;and P17.27 billion in 2013.

Meralco’s expenses for its 5,660 employees consisting of salaries, wages and benefits amounted to P12.42 billion, or 5.3 percent of its “cost and expenses” in 2015; P11 billion, or 4.6 percent, in 2014; and P11.26 billion, or 4.1 percent, in 2013.

esdperez@gmail.com.

ATTENTION MERALCO: THESE PICTURES WERE TAKEN AT BATO-BATO STREET, UNIT 5, BARANGAY COMMONWEALTH, DISTRICT 2, QUEZON CITY, THERE ARE ALSO IN BARANGAY PAYATAS, HOLY SPIRIT, BAGONG SILANGAN, BATASAN HILLS AND OTHER PARTS OF QUEZON CITY AND NEARBY CITIES.

WE DEMAND A BETTER SERVICE FROM YOU BECAUSE WE DESERVE IT!