The highest-paid executives of the two leading telecommunications firms in the country, PLDT Inc. and Globe Telecom, earned tens of millions in 2017.
Both companies listed five executives they consider as the highest-paid, which include each firm’s CEOs, presidents and other key officials. (See infographic)
The two companies paid their top officials almost the same average annual salaries per head—PLDT at Php21.6 million and Globe with Php21.4 million. However, Globe gave bonuses almost as much the annual salary, bringing the average total compensation of each top executive to Php40.8 million.
In comparison, PLDT only gave their officials an average of Php11.8 million each in bonuses, variable pay and other payments, bringing the average total to Php33.4 million per head. This is 22 percent less than its main competitor.
Do higher bonuses affect companies’ financial performance?
While PLDT has higher levels of revenues and net income, Globe is slowly catching up.
In its latest quarterly report, PLDT recorded Php11.8 billion profits from revenues of Php82.2 billion in the first six months of the year. This is a little higher than Globe’s Php10.1 billion profits from Php8.1 billion revenues.
However, Globe grew by a more significant amount financially compared to PLDT. The Ayala-owned telco subsidiary’s revenues increased by 12 percent in the first six months of the year compared to the same period last year, while its net income surged by 25 percent.
PLDT, on the other hand, only managed to grow its revenues by four percent. Its profits even fell by 29 percent in the first half of the year.
Globe’s continued growth can be traced to its focus on mobile services over fixed line voice. It has already surpassed PLDT’s base of 58.5 million mobile subscribers by 11 percent with 65.1 million.
PLDT still has more broadband and fixed line subscribers, but these only contribute little to the company’s earnings since most of both companies’ service revenues in the first half of the year were driven by their mobile services—PLDT at 49 percent and Globe at 77 percent.
This article was updated on August 31, 2018 to correct the companies' first-half earnings.
Pauline Macaraeg is Entrepreneur PH's data journalist. Follow her on Twitter @paulinemacaraeg