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San Miguel: Succession in the Philippines' Largest Corporation
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In September 2011, San Miguel Corporation (SMC) celebrated its 122nd anniversary. Its chairman had just turned 76. Two years earlier, he had travelled to the United States to receive a cardiac ablation to correct an irregular heart rhythm. Succession-related questions were on his mind. SMC needed a clear plan for the leadership transition. The charismatic chairman spent his life successfully exploiting business opportunities, growing SMC from a small brewery company into a giant business group. By 2011, SMC was the largest corporation in the Philippines in terms of revenue-accounting for about 6 per cent of the country's gross domestic product and employing about 17,000 people. The group engaged in a wide range of businesses including mining, oil refining and distribution, power, telecommunications, airlines, airports, and infrastructure. How could the company continue to thrive without its remarkable leader? Finding a path towards a smooth leadership succession would be a difficult task.