Raising SM corporate governance bar based on meritocracy
‘Perfect meritocracy is blind to issues of gender, background, and race. This is the level to aspire for in any organization — that it is composed of persons of merit, not just a collection of diverse personalities.’
PASAY CITY, PHILIPPINES, 17 January 2025 — In today’s evolving corporate landscape, meritocracy is advancing as an indicator of effective governance, 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 Corporation, this principle is illustrated as told from the lens of its independent directors. Tomasa “Tammy” 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.”
This sentiment is echoed by Atty. 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.
Governance framework
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 M. 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.