Erramon Aboitiz, the fourth-gen chief executive officer of Filipino family business Aboitiz Equity Ventures, has postponed his retirement plans for three years in order to ensure a smooth leadership transition for his children.
According to a company statement, the board extended Aboitiz’s tenure in order to ensure the group’s long-term goals and said the 58-year-old would now retire in late 2019.
A number of fifth generation family members work within the business – Ana Aboitiz-Delgado, Rafa de Mesa, Carlos Aboitiz, Tristan Aboitiz and William Paradies – but no leader has reportedly emerged.
“The Aboitiz Equity Ventures board is committed to ensuring that the Aboitiz group’s long-term goals are successfully attained. The extension of Mr Aboitiz’s employment was made to ensure a smoother transition of leadership and the continued execution of the group’s initiatives,” the statement said.
“The board is confident that in a few years, the organisation will be ready for a smooth transfer of leadership to continue executing the group’s strategic initiatives,” it added.
Aboitiz traces its roots to the late 1800s where it functioned as a hemp trading and general merchandise company in Ormoc, Philippines.
In 1994, to fund its emerging growth opportunities, the Aboitiz family partially listed Aboitiz Equity Ventures on the Philippine Stock Exchange and then proceeded to diversify into power, banking, food, and land development businesses.
According to Forbes Magazine, the Aboitiz family are the eighth richest family in the Philippines with an estimated net worth of $3.6 billion.
Erramon Aboitiz has served as president and chief executive officer of Aboitiz Equity Ventures since January 2009. He was previously a director at the company.
Aboitiz Equity Ventures had revenues of PHP 90.8 billion (€1.6 billion) and was named “best managed” company in the Philippines in an annual survey by FinanceAsia magazine.
Aboitiz is a director at the Family Business Development Centre of Ateneo de Manila University.