5th generation Aboitiz sets to take over family business

THE fifth generation of the Aboitiz family may soon be ready to take over the company, said Xavier “Txabi” Aboitiz, Aboitiz Equity Ventures Inc. (AEV) chief human resources officer.

“We’re definitely in the process of passing on the torch into their capable hands,” said Txabi who is a fourth generation Aboitiz, during the 10th Aboitiz Future Leaders Business Summit. “The fifth (generation) is taking over fast.”

Of the 23 Aboitiz family members, who are currently with the company, around 10 are from the fifth generation. One of them is Ana Aboitiz-Delgado, who is the vice president of Union Bank of the Philippines.

Succession has always been smooth and no trouble for the family, despite studies saying that family-owned businesses tend to die out by the third generation.

According to Erramon “Montxu” Aboitiz, president and chief executive officer (CEO) of AEV, they have passed the baton down seven times since the company’s beginnings in 1989.

Montxu, who belongs to the fourth generation of the family, said during his welcoming remarks that sustainability is key in the company, and that AEV has always taken very seriously the capability to pass the company down generation to generation.

“We also don’t really see ourselves as owners but as stewards, so we have been lucky enough to pass on the business to my generation and to this generation,¨” added Txabi. “One of our key principles is how we, at the end of the day, follow one direction as a family.”
equals in business

Ana Aboitiz-Delgado said they are all seen as equals and as professionals, rather than as Aboitiz family members, in the business.

Ana said all the family members, who have worked with the company, have had to earn their positions in AEV.

“We better be just as good as the best professionals,” she said. “We’re treated as equals in that sense. Otherwise, if you’re just forced, you’re not being responsible for the organization.”

The Aboitiz family also have a family constitution, which has to be read, agreed upon, and signed by all members of the family, especially those who intend to take part in the family-led business.

However, Txabi said that none of them were coerced or forced into taking up the mantle.

With the exception of perhaps the first and second generation of Aboitiz in the company, the rest of the family members were given the freedom to choose to work with the company, or pursue their own interests, Txabi said.

To date, there are less than 10 percent of each living generation working in the company, from board to operations.