#Philippines #SM Investments #Pasay City #Corporate Governance #Five Golden Arrow

SM Investments Corporation: A Benchmark in Corporate Governance

In a significant achievement, SM Investments Corporation (SMIC), the parent entity of the prominent SM Group, has received the esteemed Five Golden Arrow Award from the Institute of Corporate Directors (ICD) for three consecutive years. This recognition underscores their commitment to maintaining the highest standards of corporate governance in the Philippines.

Excellence in Corporate Governance

The Five Golden Arrow Award is a hallmark of excellence in corporate governance, evaluating key aspects such as the protection of shareholder rights, timely disclosure of material information, and effective board oversight. This prestigious accolade was awarded based on the assessment results from the ASEAN Corporate Governance Scorecard for 2025.

Frederic C. DyBuncio, President and CEO of SM Investments, expressed gratitude for the award, attributing it to the company's robust governance practices rooted in integrity, transparency, and accountability. "Our goal is to continuously create long-term value for our stakeholders, and strong governance is central to that mission," stated DyBuncio during the award announcement.

Leadership and Governance Structure

At the helm of SM Investments is an independent Board led by Chairman Amando M. Tetangco Jr., who is notable for being the first independent Chairman in the company’s history. Tetangco's leadership plays a crucial role in guiding the parent company’s strategic direction across its diverse business portfolio, which includes retail, banking, and property sectors.

The Board is tasked with overseeing essential components like risk management, major investments, and financial strategies aimed at maximizing shareholder returns. The individual subsidiaries, including retail giant SM Prime Holdings and leading bank BDO Unibank, maintain their own governance structures, ensuring that each business entity operates efficiently and transparently.

Holistic Assessment Criteria

The recognition from the ICD not only highlights SM Investments' governance but also provides a broader acknowledgment of best practices in the industry. The ACGS assessment is pivotal in comparing corporate governance protocols among companies, emphasizing elements like:

• - Shareholder Rights and Equitable Treatment: Ensuring all shareholders are treated fairly.
• - Sustainability and Resilience: Valuing long-term sustainability in business practices.
• - Stakeholder Relations: Maintaining transparent communication with all stakeholders, including employees, customers, and communities.
• - Transparency and Accountability: Timely disclosures of pertinent information to build trust.
• - Board Accountability: Holding the board accountable for strategic and operational performance.

These criteria lay the groundwork for institutional growth and investor confidence, marking SM Investments as a leader in corporate governance.

Celebrating Longevity and Growth

This accolade comes during a pivotal time as SM celebrates 68 years since the opening of its first store, Shoemart. The company has thrived and expanded significantly while staying true to the values of trust and integrity set forth by its founder. These foundational principles continue to influence how the SM Group operates today.

About SM Investments Corporation

As an industry leader, SM Investments Corporation is deeply entrenched in the Philippines' economic fabric, owning a diverse range of businesses in retail, banking, and real estate. Its retail division represents the largest market segment in the country, while SM Prime Holdings is acknowledged as the premier property developer. The banking sector, including BDO Unibank and China Banking Corporation, further solidifies its prominent market position.

In conclusion, SM Investments Corporation's attainment of the Five Golden Arrow Award for the third year reinforces its dedication to transparency, integrity, and governance excellence—hallmarks that not only contribute to sustainable growth but also foster long-term value creation for all stakeholders involved.