Board Composition

The Board is composed of nine (9) Directors, four of whom are executive directors and five are non-executive directors including two independent directors. To know more about them, click here.

Assisting the Board in the implementation of good corporate governance are four (4) Committees, namely: Audit and Related Party Transaction, Risk Oversight, Corporate Governance (with functions of nomination & election and compensation & remuneration), and the Executive Committee.

Board Diversity Methodology and Progress:

Board Responsibilities

It shall be the Board’s responsibility to foster the long-term success of the Corporation and secure its sustained competitiveness in a manner consistent with its fiduciary responsibility, which it shall exercise in the best interest of the Corporation, its stockholders and other stakeholders.  The Board shall conduct itself with utmost honesty and integrity in the discharge of its duties, functions and responsibilities.  

The Board actively monitors compliance with the Code of Conduct, exercises oversight through quarterly review of business performances of the Company aligned with the mission, vision and corporate strategy. The Board is also responsible for the Company’s governance and oversight function, and holds Management accountable for the internal control system.

The roles and responsibilities of the Board are indicated in the Company's By-Laws and Corporate Governance Manual.

Term of Office

The elected members of the board of directors shall hold office for one (1) year, until their successors are elected and qualified.

Term Limits of Independent Directors

The Independent Director shall serve for a maximum cumulative term of nine (9) years. The cumulative period shall start from the year 2012 in accordance with the rules and circulars of the SEC.  After which, the independent director shall be perpetually barred from re-election as such in the same company, but he/she may continue to qualify for nomination and election as a non-independent director.  In the instance that a company wants to retain an independent director who has served for nine years, the Board should provide meritorious justification/s and seek shareholders’ approval during the annual shareholders’ meeting.

Board Meetings and Quorum Requirement

The Board should convene at least four (4) regular board meetings a year. Each Director must attend at least 75% of all the board meetings held during the year. A special board meeting may be called by the Chairman, the Vice Chairman, the President/CEO, or by the majority of the Board.

A quorum at any meeting of the directors is consist of a majority of the number of directors, provided, however that an independent director shall always be in attendance. For major board decisions, a minimum quorum of at least 2/3 is required. The Board meeting is scheduled before the start of the financial year.

For the calendar year 2023, the Board approved the schedules of board and audit committee meetings during its board meeting held on November7, 2022.

For the calendar year 2024, the Board approved the schedules of board and audit committee meetings during its board meeting held on October 27, 2023.

Meetings of other board committees are scheduled within the year accordingly.

2023 Board and Committee Meeting Schedules

The Corporate Secretary

The Corporate Secretary provides a schedule of regular Board meetings and Board committee meetings, in line with our regulatory reporting dates. Special Board meetings may be called as the need arises.

The Corporate Secretary assists the Chairman in setting the Board agenda and provides Directors with meeting agenda and related materials at least five (5) days in advance of the Board meeting date. This is to provide Directors with accurate and sufficient information to make educated decisions during the Board meeting.

In addition, the Corporate Secretary maintains the integrity of the minutes of Board meetings, and provides updates to the Directors and Management regarding statutory and regulatory changes.

The Company's Corporate Secretary is Atty. Noel A. Laman, a founder and Senior Partner at Castillo Laman Tan Pantaleon & San Jose. Serving as Assistant Corporate Secretary is Atty. Ma. Pilar P. Gutierrez, a partner at the same law firm. Both possess the legal qualifications and competencies to effectively perform the corporate secretarial and related duties of the position.

The specific duties and responsibilities of the Corporate Secretary are indicated in the Corporate Governance Manual.

Board Committees

Board Advisors

The Board of Directors, by majority vote, may appoint one or more Advisors (the “Advisory Board”) whose term shall be co-terminus with the Board of Directors. The Advisory Board provides the Board of Directors with guidance and suggestions, as necessary, on matters deliberated upon during Board meetings. The Advisors must possess expertise, knowledge, experience and qualities that complement the existing Board.

Advisors may attend Board meetings and Board-level Committee meetings but do not have the authority to vote on corporate matters. They are also required to accomplish an annual performance evaluation/self-assessment form as part of the Company’s corporate governance assessment and monitoring.

Board Attendance

In compliance with SEC Memorandum Circular No. 1, Series of 2014, the Company disclosed to the PSE and SEC the attendance of the Board of Directors during the calendar year 2023.

Training Policy for Directors

Newly elected members of the Corporation’s Board of Directors shall undergo a comprehensive orientation or training on the Corporation’s business operations, policies and other related matters for such number of hours and in accordance with the requirements of the Securities and Exchange Commission.   He/she shall participate in an induction program that covers the Corporation’s strategy, general financial and legal affairs, financial reporting, compliance programs, the Code of Business Conduct and Ethics, operational and business aspects unique to the Corporation and its business activities, and the responsibilities of the Board of Directors.

To keep Directors abreast of the latest developments in corporate governance matters, they must undergo a continuing educational program to include critical issues relating to the operation of the company.  The management shall conduct an annual review to identify areas where the Board Members need further training or education.

Likewise, the Directors are encouraged to hold periodic visits to actual business operations of the Corporation’s subsidiaries, such as housing developments, power plants, mine sites, construction sites, and water treatment facilities, among others.

2023 TRAININGS/SEMINARS ATTENDED BY DIRECTORS

Remuneration of Directors

Each director receives a reasonable per diem  for his attendance at every meeting of the Board and Committee meeting. On March 31, 2016, the Board of Directors approved the increase in per diem of Board of Directors and Board Committee from Php10,000.00 to Php80,000.00 per Board meeting attendance and Php40,000.00 per Committee meeting attendance.  The same increase was approved by the majority of stockholders  during the Annual Stockholders' Meeting on July 27, 2016.

Subject to the approval of the stockholders owning at least a majority of the outstanding capital stock, directors may also be granted such compensation (other than per diems) provided however, that the total yearly compensation of directors, as such directors, shall not exceed ten (10%) percent of the net income before income tax of the Corporation during the preceding year.

The form and amount of Directors’ compensation will be determined and approved by the Compensation and Remuneration Committee in accordance with the policies and principles set forth in its Charter.

Holding and Trading Securities

Board members are required to report any holding or trading of Company’s securities within five (5) trading days to the PSE and SEC. 

Board members shall be refrained to trade the company’s securities during a black out period in compliance with PSE Disclosure Rules and Insider Trading Policy.

For the summary of shareholdings of Directors and Officers, please click here.

Board Appraisal

The Company adapted an annual performance evaluation of the Board, CEO providing their insights on their overall performance.

Full Board Review. The Full Board Review covers the Board activities, mission and purpose, governance, board organization, meetings and membership, and management support.

Peer Board Review. The Peer Board Review allows each director to assessment their co-directors in terms of leadership, interpersonal skills, strategic thinking and their contribution to the board.

Board Committees Appraisal

The Committees are guided by Board-approved Charters in the discharge of their roles and oversight responsibilities. These Charters are disclosed in our corporate website (www.dmciholdings.com).

The Board Committees conduct annual reviews of the effectiveness of the Committees’ performance using formal self-assessment questionnaires. The results of the review are discussed by the Committee, and handled accordingly.

CEO Appraisal

The Board conducts annual performance reviews of the CEO based on key result areas, which consist of Board-approved financial and nonfinancial performance metrics.

The Chief Compliance Officer oversees the performance evaluation process while the Corporate Secretary tabulates the rating results and summarizes the evaluation comments. Evaluation results are then submitted to and/or discussed with the CEO for proper disposition or action.

PERFORMANCE EVALUATION CRITERIA AND PROCESS