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COCKTALES | BDO, BPI presidents double their stock pile in two years

Nestor Tan means BUSINESS

The president of BDO, Nestor Tan, may sometimes wish he were a few inches taller but within the competitive banking industry, the chief executive of the Henry Sy bank stands tallest with his big, and still growing, stock pile.

According to the latest regulatory disclosures, Tan in just two years has doubled his BDO shareholdings to over 6.9 million shares, a nest egg worth over P770 million at current prices.

Over at BPI,  the traditional industry leader when it comes to executive compensation, Cezar Consing also doubled his shareholdings to over one million shares, valued at P92 million as of yesterday's close, since becoming president and chief executive of the Ayala bank only two years ago.

Back to BDO, Tan is currently the longest serving chief executive of a major bank, having been appointed to the presidency way back in 1998 and then steering the mid-sized bank as it chomped its way through M&As to pole position. 

And with BDO in the midst of a P60-billion worth of stock rights offer in order to keep its title as the country's biggest bank, it would be a reasonable forward-looking scenario that Tan would be a billionaire when he reaches senior citizen status by next year.

To give a perspective as to how far BDO has vaulted to industry leadership, one only has to walk down the memory lane -- Googling is actually more instantaneous -- to year 2002, when BDO was listed at the stock exchange.

Banco De Oro, as it was known at that time, ranked 13th in asset size, when it raised P2.2 billion, then a record, from the initial public offering.

But its market debut was marred by a Luzon-wide power outage, forcing the stock exchange to suspend the afternoon trading. BDO survived the ominous first day of trading at P20.75, below the IPO price of P20.80.

Then the share price sunk even lower the following year, ending 2003 at P17.75. In comparison, market leader BPI was trading at P37.85 in 2005 -- sorry, no 2002-2003 figures as 2005 is how far back the BPI website goes for its stock price history.

Yesterday, BDO closed at P112, up nearly five and a half times since it went public a decade and a half ago. BPI, in contrast, ended at P92.

To continue with the tale of the tape, BDO's market capitalization now stands at P479 billion, against the nearly P354 billion for the 166-year-old Bank of the Philippine Islands.

Since its listing, BDO has churned out a total of P13.38 in cash dividends, never missing a beat, save in 2012 when the bank opted to declare a three percent stock dividend instead.

BPI, from 2010 to 2015, had maintained a steady annual cash dividend of P1.20, except for 2012 when the bank gave out a much higher P2.30 a share.

BDO, on the other hand, started with a much lower P0.80 dividend in 2010, raising it to P1 in 2011, and then skipping the cash payout in favor of a 3 percent stock dividend in 2012, before ratcheting it up to P2.10 a share from 2013 to 2015.

Money talks

o Santa Claus came early to Lance Gokongwei after the Universal Robina president accumulated about P78.5 million worth of company shares before Christmas.

o Jollibee chief marketing officer Daniel Rafael Ramon Gomez III greeted the new year with nearly P16 million in his pockets after he flipped the stock options he received at P39.85 a share for P200.

Heard through the grapevine

Marcos-era trade minister Roberto Ongpin has just received a certificate of public convenience and necessity for his Balesin Air despite being buffeted by supertyphoon Digong only a few months ago.

The certificate from the Civil Aeronautics Board allows Balesin Air to engage in domestic and even international transportation services without undergoing through the congressional wringer for a franchise.