results of operations - Aboitiz

REPORT TO OUR STOCKHOLDERS
Growth
POWERED FOR
Compensation Committee
The Compensation Committee has exclusive authority
to establish and review policies on compensation for
directors and executive officers from Senior Vice
President and above. It likewise performs oversight
functions over the company’s Human Resources
Committee (HR Com) and its various programs.
These programs include the following: annual
review of executive performance through AEV’s
Evaluation of Executives (EVALEX) program; the
development and implementation of the company’s
training plan to ensure continuous professional
development of all team members; competency
profiling of top and middle management to establish
competency levels and standards as well as for
succession planning; an annual review of compensation
of team members and management team;
and the group-wide Culture Quality Assessment
Survey (CQAS) to determine employee satisfaction
and perception.
In 2006, the three-member Committee chaired by
Jon Ramon Aboitiz, had four regular meetings.
Independent director Jose C. Vitug is a member of
the Committee.
Investor Relations Committee
There can be no proper checks and balances unless
there is transparency in the relationship between the
company and its shareholders. The Investor Relations
Committee regularly monitors and evaluates the
implementation of programs and activities of the
company’s Corporate Communications Group geared
towards providing investors with easy and timely
access to accurate corporate information. The
Committee also works closely with AEV’s Stock and
Transfer Agent to ensure timely and sufficient
response to shareholder concerns.
In May 2006, the Corporate Communications Group
organized a briefing in Makati City to give shareholders
and investors unable to attend the annual shareholders’
meeting in Cebu City an opportunity to
dialogue with the company’s board members and key
officers. It also organized regular meetings of AEV’s
key officers with institutional investors and financial
analysts. The constant updating of the company’s
website and the regular release of the Online
Newsletter ensure that the latest information about
AEV is made available to shareholders and investors.
AEV Quarterly Bulletin
With the ever-evolving regulatory landscape, the
Corporate Secretary and the Compliance Team,
under the direction of the Board, publish an AEV
Quarterly Bulletin to advise Board members on
relevant developments in regulatory compliance as
well as jurisprudence that could have a bearing on
decisions the Board may have to make.
As AEV gears up for further growth and the challenges
that go with it, keeping the Board informed and
updated will allow them to render their responsibilities
more effectively.
M. Jasmine S. Oporto
CHIEF COMPLIANCE OFFICER
30 ABOITIZ EQUITY VENTURES ANNUAL REPORT 2006