How one of Philippines' richest families prevents heir syndrome
You will not find the third generation of Gokongweis in the boardroom—they are testing food formulas in research laboratories, managing animal feed mills in Cebu, and supervising operations on factory floors.
For the four cousins currently working inside JG Summit Holdings Inc. and its affiliate companies, that ground-level experience is intentional. As the conglomerate prepares for an eventual generational transition, the family is doing away with executive fast tracks.
Out of 50 third-generation cousins, only four currently work for the business, and none hold corporate board seats or executive titles.
The most visible heir so far is Justin Gokongwei Pe, son of Robina Gokongwei-Pe, who works on the manufacturing side at consumer food maker Universal Robina Corp. (URC).
Two other cousins are based in Cebu, overseeing animal feed operations and shopping mall leasing. A fourth cousin, a trained chemical engineer, works in product research and development for the food division.
Keeping the enterprise grounded comes down to giving younger family members room to choose their own career paths, according to Lance Gokongwei, president and chief executive officer of JG Summit.
“It’s our job in the second generation to, I guess, make it attractive for them to join the business in the future, because they have so many choices available to them,” Gokongwei said.
“You know, kids of the next generation have so many choices and their own aspirations—many of them want to prove themselves outside in their own independent capacity,” he added.
That management philosophy extends to his own household. Lance’s children, aged 23 and 20, are building work experience outside the conglomerate, with a focus on technology.
“If they’re interested and qualified, then hopefully I will try to attract them to join the business,” Gokongwei said. “They’re definitely much more tech-savvy than I am, and right now, they’re gaining experience outside the business.”
The decision to enforce operational training comes during a challenging operating environment for multi-industry groups. Higher global oil prices have increased fuel costs for budget airline unit Cebu Air Inc., pushing the parent firm to rely on its balance sheet strength and consumer food sales to help absorb market volatility.
Whether more members of the 50-cousin cohort choose to join the business will depend on whether this bottom-up framework proves successful over time.
“Fundamentally, we hope they carry the same values that Mr. John and his brothers had: integrity, hard work, prudence, and an entrepreneurial spirit,” Gokongwei said, referring to his late father, founder John Gokongwei Jr.
“Beyond that, it’s about having the continued boldness to dream, finding solutions for customers, and pursuing new opportunities,” he concluded.