Sons-In-Law Help Ayala Empire, Lopezes vs. Gma 7

Unknown to most people, the Hispanic Roxas/Ayala/Zobel clan had weathered the vicissitudes of dynastic decline with the providential help of capable sons-in-law such as the first Antonio de Ayala, then the Zobels and then the 20th century developer of Makati, Joseph McMicking Jr. The Ayala conglomerate was originally Casa Roxas, then when the son-in-law took over, the firm was renamed Ayala y Compania. The late historian Carlos Quirino told this writer that the first Ayala was a Basque, a nephew of the then powerful Archbishop of Manila and his tomb is now inside the San Agustin Church in Intramuros. Quirino added that Zobel was a German Jew.

Like the Ayala experience, the Harvard-educated industrialist Salvador Araneta relied on his son-in-law to perpetuate his business success. He founded Asia’s pioneering flour mill as the core of the modern-day RFM Group of Companies! . He appointed his son-in-law Jose Concepcion Jr. as his successor. Today, carrying on the vision of the late founder is his entrepreneurial and aggressive La Salle-schooled grandson Jose "Joey" Araneta Concepcion III. The Araneta/Concepcion family had not stumbled into traumatic reversal of fortunes like that of other famous old business clans.

Although still wealthy, the third-generation Lopezes of ABS-CBN 2 led by Harvard-educated Eugenio "Gabby" Lopez III has already lost TV/radio industry leadership to upstart rival GMA 7 led by Yale-educated Atty. Felipe "Henry" Gozon. Despite their impeccable political connections, the Lopez family’s water utility business, the Rockwell mall/realty development and the Bayantel telecom firms have not performed well compared to the Zobel-Ayala family’s profitable water utility operations, Greenbelt/Glorietta mall and realty projects, and Globe Telecom. Even with their ABS-CBN TV/radio clout, the magazine business of the Lopez family! has lagged behind the aggressive Summit Media led by Lisa Gokongwei-Cheng.

Atty. Felipe Gozon explained that one of the motivations why his family, the Jimenezes and the Duavits, have decided to publicly list GMA Network Inc. this year is their hope of ensuring that the success of the business can continue beyond even the three ruling families’ direct management. By taking a closely-held private corporation public, one can improve professionalization of the management, improving transparency and corporate governance as checks on possible future abuse of power or fatal mistakes. Gokongwei, Lucio Tan, Yuchengco, Henry Sy, George Ty

Like the secretive and inscrutable Chinese emperors whom he idolizes, Lucio Tan has kept his future succession plans a mystery. Was he following a scenario already played out in ancient history, with his various potential successors parceling out the empire into separate independent fiefdoms, or will he just allow a free-for-all contention to determine the eventual future emperor, or maybe he already has a plan but has opted to keep it a secret?

I once asked Tan pointblank why he has not yet revealed his anointed successor or successors, reminding him that the stability of his vast enterprises is crucial to the economic well-being of Philippine society. The country’s wealthiest taipan tapped my shoulder and half-jokingly said: "I plan to sell everything, so I can live a few more years longer." When I commended his fellow rags-to-riches billionaire John Gokongwei Jr. ! for orchestrating his formal retirement in favor of brother James Go and son Lance Yu Gokongwei, Lucio Tan laughed: "Don’t believe that baloney from Gokongwei. That guy will continue to work very hard everyday until the day he goes to heaven!"

A seemingly murky picture is the succession scenario of RCBC/Malayan Insurance CEO Alfonso Yuchengco. He is a rich third-generation scion who has only some Asian values and whose heirs are considered more westernized in values. One of his sons had publicly resigned from a top post in RCBC. It is said that his daughters might eventually be his successors.

In contrast to the Yuchengco case, the country’s second wealthiest billionaire Henry Sy of SM Group is highly regarded for the traditional Confucian values, work ethic, drive and filial obedience of his children led by eldest child Tessie. Metrobank/Toyota taipan George S.K. Ty also strictly raised his kids in traditional Confucian values and discipline, perhaps because he! had seen how his late rich dad Norberto Ty’s favorite son and his half-brother didn’t turn out to be as driven as himself?