Lucio Tan III replaces Michael Tan as LT Group COO
LT Group Inc. announced that its Board of Directors has appointed the founder’s grandson Lucio C. Tan III to replace his uncle Michael G. Tan as Vice Chairman and Chief Operating Officer (COO) of the conglomerate.
In a statement, LT Group said Michael Tan will continue to serve in his capacity as President, during a transition period, while sharing the decision-making for business and operational matters with Lucio III, However, it added that Lucio III will also be taking over Michael Tan’s position as President and COO no later than April 2023.
“In a board resolution unanimously approved and adopted during company’s Organizational Board Meeting, the LT Group Inc. Board stated that its succession plan involved the appointment of Michael G. Tan and Lucio C. Tan III as President and Chief Operating Officer, respectively,” the statement said.
It pointed out that, “During this transition period, Michael G. Tan will progressively turn over the functions of the President to Lucio C. Tan III and they are expected to share decision-making for business and operational matters.”
Meanwhile, LT Group is increasing its capital expenditures budget by 33 percent to P12 billion this year from P9 billion in 2021 mainly for the higher IT budget of Philippine National Bank as well as the ramping up of construction of projects by Eton Properties and the Ayala Land-Eton joint venture.
“Overall, 2022 should be a better year than 2021 as the economy opens up and as more and more people get vaccinated. The opening up of the economy means that the purchasing power of consumers will improve and bodes well for our different businesses,” said Michael Tan.
He added that, “This should mean increased demand for the products of PMFTC, Tanduay and Asia Brewery. Eton should have higher occupancy rates, but it will take time for the fit-outs of new office and retail tenants. An improved economy will also mean less non-performing loans and higher margins for PNB.”
Tan noted that, “Typhoon Odette in late December 2021 devastated parts of the Visayas and Mindanao and left many areas without power and water for weeks. The full impact of the destruction on the economy will be felt in 2022.”
Meanwhile, he said “The war in Ukraine that started in February 24 has caused oil prices, already on the upswing given higher global demand, to surge even more. This has brought about higher manufacturing, distribution and transportation costs, with inflation expected to breach the government’s original target of 2 to 4 percent for 2022.”
“I am very grateful for the trust and confidence of the Chairman and the Board of Directors. I am fortunate to be working with the best minds in business, who have helped create a leadership succession plan that will ensure stability and business continuity for the LT Group,” said Lucio III.
The first son of the late Lucio “Bong” Tan, Jr., former director of LT Group and son of chairman Dr. Lucio C. Tan, has assumed various leadership roles within the conglomerate since he settled in the Philippines in 2019.
“It is my honor to be entrusted with this responsibility. I intend to uphold the values that are strongly held by my grandfather, Lucio C. Tan and which I likewise hold dear -- the values of integrity, hard work, and diligence,” he added.
Currently, Lucio III is a director of Philippine Airlines (PAL) and vice president of PAL Holdings. He also serves as director of PAL Express, Philippine National Bank, MacroAsia Corporation, Lufthansa Technik Philippines, MacroAsia Catering Services, Inc., MacroAsia SATS Inflight Services Corp., MacroAsia Airport Services Corp., MacroAsia Properties Development Corp., Belton Communities, Inc., Eton City, and First Homes, Inc.
As President and COO of Tanduay Distillers, he steered the company throughout the pandemic and managed to boost its net income to historic levels of P1.1 billion in 2020 and P1.2 billion in 2021.
Under his leadership, Tanduay’s international business continued its growth trajectory through aggressive marketing expansion and partnerships with top global distributors.