Please refer to the Annual Corporate Governance Report (ACGR), including consolidated changes for 2015, posted on the company website on this page: http://lopez-holdings.ph/corporate-governance/corporate-governance-report-and-updates. Following are highlights.
In 2002, the board of directors of Lopez Holdings adopted the company’s Manual of Corporate Governance to institutionalize corporate governance principles. It is used in practice as a reference and guide for the conduct of all business. Amendments to the Manual were adopted in 2009, 2011, 2013, 2014 and 2015.
The Board, management, employees, and shareholders believe that good corporate governance is a necessary component of sound strategic business management and improves the economic and commercial prosperity of the corporation and its stockholders.
The Board monitors and oversees the implementation of corporate strategy. It reviews the corporate vision and mission annually and provides time to study, evaluate and comment on the corporate strategies of major investees, which present their respective corporate objectives, measures, and risks to the Board en banc or to the Risk Management Committee, in the case of risks.
The budget process for the succeeding year begins with the Economic and Political Briefing in the third quarter of the year. This is followed by the combined Five Year Strategic Planning Conference and Annual Budget Conference in the fourth quarter or first quarter of the following year. A Mid-Year Budget Conference is held in the second quarter of the year to track progress against targets, and facilitate synergistic resolution of issues or mitigation of identified risks. Top and senior executives and key staff members of the Lopez Group member companies participate in these exercises.