Painful but necessary: Lopez majority justify leadership shake-up
The Lopez family majority has framed its dispute with Federico “Piki” Lopez as both a breakdown in trust and a failure in governance, as the long-running feud within the business clan turns increasingly personal.
In a fresh statement, members of the controlling bloc—descendants of the late patriarch Eugenio Lopez Sr.—said they had “lost trust and confidence” in their cousin Piki, underscoring what they described as deep personal hurt after years of strained relations.
“This matter should have stayed private. But Piki chose to make it public,” the group said.
The signatories, who collectively represent about 71 percent of private family holding firm Lopez Inc., include key family figures such as Eugenio “Gabby” Lopez III and Rafael L. Lopez, alongside other heirs from the clan’s three branches.
They reiterated that their decision to remove Piki as president of Lopez Inc. was “not easy,” but necessary to protect shareholders, employees and the group’s long-term interests. Piki remains a board member.
While the emotional tone marked a shift, the majority maintained that governance concerns remain at the core of the dispute.
These stem from two major First Gen Corp. transactions—the P50-billion sale of a 60-percent stake in its gas business to Prime Infrastructure and the P62-billion acquisition of a 33-percent stake in Prime Infra’s hydropower assets.
The majority has repeatedly claimed it was not properly informed of these deals and flagged embedded “poison pill” provisions that could entrench management control and impose steep costs if leadership changes.
The Inquirer reached out to Piki’s office for his comment on the latest statement from his cousins, but have yet to receive an official response.
Conflicts
Market watchers say such conflicts are not uncommon in family-led conglomerates, but stress the need for clearer succession planning and governance frameworks.
“Family or extended family enterprises should align succession planning with global best practices, including corporate governance standards when it comes to leadership decisions and policies,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
He added that mechanisms for leadership transitions are typically guided by a “family business constitution,” which sets rules on major decisions and helps prevent disputes.
Such frameworks, he said, also serve to protect minority shareholders and the investing public, particularly in listed companies where family control intersects with broader market interests.
The Lopez feud—now blending corporate governance issues with personal grievances—has raised concerns over stability across the group’s businesses, including energy, media and property.
For the majority bloc, however, the move against Piki was driven not by internal divisions, but by what they see as a collective duty to uphold governance standards and preserve the family’s legacy.
The dispute stems from a move made by the faction led by Gabby to replace Piki at the helm of Lopez Inc.
Records show that it was carried out during a special board meeting last February, where five directors voted to remove Piki while two opposed the decision.
Piki challenged the board resolutions in court, seeking to nullify them and regain his position.
In his complaint, Piki argued that his removal was invalid, saying the special board meeting did not include his ouster in its agenda—an alleged violation of corporate rules requiring specific disclosure of matters to be taken up.
A court order has kept him in his post and barred his removal from other Lopez companies linked to the case.
