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Multi-Purpose Room, 4/F Administration Building FEU Main Campus, Nicanor Reyes Street, Sampaloc, Manila

19 October 2019

The Annual Meeting of Stockholders of The Far Eastern University, Incorporated (FEU), doing business under the name and style Far Eastern University, was held at the Multi-Purpose Room, 4/F Administration Building, FEU Main Campus, Nicanor Reyes Street, Sampaloc, Manila on 19 October 2019, in accordance with Sections III (Meetings) and VII (Annual Meeting) of FEU’s Amended By-Laws.


The Lead Independent Trustee, Dr. Edilberto C. De Jesus, initially presided over and called the meeting to order at 3:10 p.m. The Corporate Secretary recorded the minutes of the meeting.

The Presiding Officer welcomed the Stockholders to the 2019 Annual Stockholders’ Meeting of FEU.


The first item in the Agenda was the certification of the notice of meeting and determination of quorum.

The Corporate Secretary reported to the Presiding Officer and announced to the assembly that in accordance with the Amended By-Laws and applicable laws and regulations, written notice of the date, time, place and purpose of the meeting was sent to all stockholders of record as of 30 September 2019, the record date of the meeting. Notice of the meeting was submitted to the Philippine Stock Exchange, Inc. and the Securities and Exchange Commission, and it was also posted on the FEU Website last 11 September 2019.

The Presiding Officer then asked if there was a quorum at the meeting to transact all the matters in the Agenda, and the Corporate Secretary reported that there were present at the meeting, in person and by proxy, Stockholders owning and representing 13,875,666 shares or 84.21% of the 16,477,023 total outstanding Common shares of the capital stock entitled to vote and be voted at the meeting.

Thereupon, the Presiding Officer declared that a quorum was present and that the meeting was duly convened.

The following members of the Board of Trustees were likewise present in person or represented by proxy at the meeting:

 Dr. Lourdes R. Montinola Trustee and Chair Emeritus

 Mr. Aurelio R. Montinola III

Trustee and Chairman of the Board of Trustees, Executive Committee Chairman, and Talent Management Committee Chairman

 Dr. Michael M. Alba Trustee and President, Executive


Committee Member, and Risk Management Committee Member

 Dr. Edilberto C. De Jesus Lead Independent Trustee, Audit Committee Member, Corporate Governance Committee Chairman, Nomination Committee Chairman, and Risk Management Committee Chairman

 Ms. Angelina P. Jose Trustee, Executive Committee Member, Audit Committee Alternate Member, and Corporate Governance Committee Member

 Mr. Antonio R. Montinola* Trustee, and Nomination Committee Member

 Ms. Sherisa P. Nuesa Independent Trustee, Audit Committee Chairman, Corporate Governance Committee Alternate Member, Risk Management Committee Member, and Talent Management Committee Member

 Mr. Jose T. Sio Trustee

 Dr. Paulino Y. Tan Trustee, Executive Committee Member, Audit Committee Member, Nomination Committee Member, and Talent Management Committee Member


*Represented by proxy.

Also present during the meeting were the following representatives of FEU’s External Auditor (Punongbayan & Araullo), and FEU’s Stock Transfer Agent (Stock Transfer Service, Inc.):

1. Punongbayan & Araullo, the Philippine member firm of Grant Thornton International, Ltd.

Mailene Sigue-Bisnar Partner

Mark Ian Carrasco Manager

2. Stock Transfer Service, Inc.

Ricardo D. Regala, Jr. General Manager

Michael C. Capoy Assistant Manager

Reynand C. Malayao Supervisor

Kathlyn V. Flaminiano Securities Processor Marites F. Yumol Securities Processor


The Presiding Officer then proceeded to the next order of business, which was the approval of the minutes of the Annual Stockholders’ Meeting held on 20 October 2018. Copies of the minutes were provided to the Stockholders upon their registration for the meeting, and an electronic copy had been available on FEU’s Website since last year, 26 October 2018.


On motion made by Ms. Cherry Wyne E. Inciong and duly seconded, the Stockholders adopted and approved the following resolution:

Stockholders’ Resolution No. 01-2019

“RESOLVED, That the reading of the minutes of the Annual Meeting of Stockholders held on 20 October 2018 be, as it is hereby, dispensed with, and that said minutes be, as it is hereby, approved as presented, in as much as the same have been posted on the Investors Website of Far Eastern University since 26 October 2018 and copies were provided to all the Stockholders present.”

Voting Results Voted in Favor Voted Against Abstained

Number of Shares Voted 13,805,355 3,322 66,989

Percent of Shares Voted 83.79% 0.02% 0.41%


The next item in the Agenda was the Academic Report of the President for the academic year 2018-2019.

At this point, the President presented his 2018-2019 Academic Report to the Stockholders:

The President’s Annual Report 2019 

Good afternoon, ladies and gentlemen. I am pleased to present my annual  report for 2019. 

As you know, Far Eastern University, Incorporated, as of today, is the parent  company of five (5) corporations, namely: East Asia Computer Center, Inc. 

(EACCI); Far Eastern College Silang, Inc.; FEU Alabang, Inc.; FEU High School,  Inc.; and Roosevelt College, Inc. 

FEU, Inc., itself operates FEU Manila and FEU Makati (which is an extension  campus of FEU Manila). 

EACCI does business under the names and styles of FEU Institute of  Technology and FEU Diliman, and also powers FEU Alabang.  Far Eastern  College Silang, Inc., operates FEU Cavite.   And FEU High School and Roosevelt  College operates schools under their names.   

Edustria, on the other hand, is a joint venture with the Technological Institute  of the Philippines. 

Allow me to start with some statistics, really to get them out of the way. 

Here let me summarize the data on enrollment, graduates, licensure exam  outcomes, and the faculty. 




In AY 2018‒2019, student enrollment in the FEU Group of Schools was  registered at 40,289. 

This represented an 11.1% increase in student population from AY 2017‒2018  but was only 1.6% higher than in AY 2016‒2017 and 1.3% higher than in AY  2015‒2016.  

As I will explain later, these system‐wide numbers contain the vicissitudes of  different components of education resulting from RA 10533 (the Enhanced  Basic Education Act of 2013) and RA 10931 (Access to Quality Tertiary  Education Act).  

Due to RA 10533, the higher education departments of FEU schools still do not  have the full complement of their pre‐K‒12 student populations; due to RA  10931, their very first intakes of college freshmen in the K‒12 era may have  been adversely affected by free tuitions in SUCs and LUCs. 


In contrast, the basic education departments of FEU schools have benefited  from the addition of Grades 11 and 12 to the basic education cycle. It is,  however, more difficult to administer a large basic‐education program, which  explains the more modest growth of the basic‐education student population   in the FEU system.   


Of the 40,289 students, 68.1% (or 27,426) were enrolled in higher education  programs, which indicates that FEU schools are (still) skewed in favor of  higher‐education offerings. 



In AY 2018‒2019, the FEU Group of Schools graduated 11,999 students.   This  was 4.4% higher than the number of graduates in the previous academic year  (11,493); 61.5% (or 7,377) were conferred higher education degrees, which is  consistent with the enrollment I presented earlier 


Licensure Exam Results    

The licensure exam results of graduates of FEU schools were generally above  the national passing rates and they continue to improve. 


FEU Manila  Date  Examinees  Passers  Passing Rate  FEU  National  Architecture 

June 2018  183  103  56.3  56.0 

Jan 2019  46  25  54.3  56.3 

June 2019  135  100  74.1  66.3 

Bar   2018  34  17  50.0  22.2 

CPA  Oct 2018  114  87  76.3  25.2 

May 2019  47  24  51.1  16.5 

LET‐Elementary  Sept 2018  36  25  69.4  20.3 

March 2019  66.7  27.3 

LET‐Secondary  Sept 2018  106  80  75.5  48.0 

March 2019  68  56  82.4  26.0 

MedTech  Sept 2018  251  241  96.0  77.7 

Mar 2019  209  201  96.2  68.5 


Sept 2019  219  214  97.7  73.5  Nursing 

June 2018  100.0  43.8 

Nov 2018  61  55  90.2  40.0 

June 2019  100.0  52.2 

Psychometry  Oct 2018  250  136  54.4  47.7 


FEU Tech  Date  Examinees  Passers  Passing Rate  FEU  National  Civil Engineering 

May 2018  141  98  69.5  36.0 

Nov 2018  71  47  66.2  45.1 

May 2019  168  123  73.2  38.1 

Electrical Engineering 

Sept 2018  15  14  93.3  66.7 

April 2019  31  29  93.5  62.8 

Aug 2019  20  16  80.0  67.2 

Electronics  Engineering 

Oct 2018  61  24  39.3  49.5 

April 2019  63  39  61.9  48.9 

Electronics Technician Oct 2018  61  54  88.5  81.7 

April 2019  53  47  88.7  88.7 


Programs (Subs)  Date  Examinees  Passers  Passing Rate  FEU  National 

CPA (Diliman)  Oct 2018  13  53.8  25.2 

CPA (Cavite)  Oct 2018  23  21.7  25.2 

May 2019  0.0  16.5 

LET‐Elementary  (Cavite) 

Sept 2018  33.3  20.3 

March 2019  0.0  27.3 

LET‐Secondary (Cavite) Sept 2018  0.0  48.0  LET‐Elementary (RCI‐


Sept 2018  66.7  20.3 

March 2019  100.0  27.3 

LET‐Secondary (RCI‐


Sept 2018  88.9  48.0 

March 2019  57.1  26.0 

LET‐Secondary (RCI‐

Marikina)  March 2019  33.3  27.3 


FEU schools also have their share of top‐notchers. 


Program  Date  Top‐notchers  Place 

Architecture  June 2018  Jonighna Cafirma Edralin  10th  June 2019  Miko Angelo de Jesus Balverde  5th 

CPA  Oct 2018  Lanz Adrian Martin Cruz  5th 

MedTech  Sept 2018  Ericson Lim Cua  4th 


Christine Joy De Leon  5th  Jarina Alery Benguan  6th 

Kenneth Generoso  9th 

Lorenz Deduyo  9th 

Sept 2019  Genfielou Anne Frias Olarte  10th 

Psychometry  Oct 2018  Tristan Stafford Rentoza Ross  8th  John Michael Adman Tabla  9th  Civil Engineering  May 2018  John Michael Vince R. Martin  9th 

Electronics Engineer  April 2019 

Juan Miguel H. Villaroel  3rd  Jomar Borbe Calauos  6th  Rex Paolo Combalier Gamara  7th 

Electronics Technician  Oct 2018  Kyle Francis Pascua de Castro  3rd   


In AY 2018‒2019, the faculty complement in the FEU Group of Schools was  1,347 strong, of which 64.6% (870) were full‐time members.  

Among the faculty members in the higher education departments of FEU  schools, 17.5% (193) had doctoral degrees.  

Moreover, this percentage is expected to increase in the coming years as the  40 or so faculty members who were sent to graduate school earn their  doctoral diplomas. 



Now for the more exciting stuff. 

For the FEU Group of Schools, Academic Year (AY) 2018‒2019 was a season of  reorienting bearings (FEU Manila and FEU Cavite); adopting and adapting FEU  Manila’s aspiration framework as well as assimilating policies, processes, and  systems (FEU Tech, FEU Diliman, and FEU Alabang); starting‐ or restarting‐up  (FEU Alabang, FEU High School, and Roosevelt College); and birthing (Edustria); 

In FEU Manila, we felt that we had achieved, by and large, the goals set out in  Aspiration 2020, so that we went up another gear.  Specifically, FEU Manila  started to focus on shaping the FEU schooling experience. 

In FEU Cavite, the college dean Dr. Marcon Espino was promoted to serve  concurrently as executive director. Under Dr. Espino, FEU Cavite rationalized  its program offerings and took the lead in developing the curriculum maps. 

On the other hand, the EACCI operated schools adopted and adapted FEU  Manila’s aspiration framework.  And they standardized their policies,  processes, and systems using FEU Tech as the benchmark. 


For the other schools, AY 2018‒2019 was a year of starting up.  FEU Alabang  opened its doors to its first batch of students.  New leaders were appointed in 


FEU High School and FEU Roosevelt because in FEU High School, it was felt that  a reboot with a quality focus was needed, while in FEU Roosevelt, a change in  culture and new marketing strategies had to be effected. 

And Edustria, a joint venture with the Technological Institute of the 

Philippines, was born.  We are now in the process of setting up a senior high  school in the Lima Technology Park. What is different about the school is that  it will cater to students who would like to get a job after graduating from  senior high. 

And so, it can be said that AY 2018‒2019 was a year marked by a plethora of  responses, occasioned by the FEU Group’s careful consideration of the  challenges confronting Philippine education and the Group’s timely midterm  review of strategic directions. 





Gleaned as the challenges were:  how to    

(a) help the country maximize its demographic dividend, 

(b) navigate legislative initiatives, specifically Republic Act 10533 (the 

Enhanced Basic Education Act of 2013) and Republic Act 10931 (the Access to  Universal Quality Tertiary Education Act), and 

(c) prepare for the fast‐approaching disruptive future.  


Demographic Dividend   

The demographic dividend hypothesis states that, when a country has a falling  dependency ratio and it is able to provide gainful employment to its working‐

age population, then its household saving rate rises and the savings can be  pooled to make strategic investments that sets it on a high economic growth  trajectory. 

In other words:  When there are relatively few dependents and workers are  employed, resources are freed up for investments, which spur sustained high  economic growth. 



Three economic‐dividend success stories are Singapore, South Korea, and  


In each case, during the period when the dependency ratio was falling, the  living standard rose at an annual rate of more than 6.5% for over 30 years. 

In the process, each country was able to attain the rich‐economy living  standard of US$25,000 per year. 




The chart shows that the Philippines’ dependency ratio peaked at 1.013 in  1964, is at 0.545 in 2019, and will bottom out at 0.478 in 2050.  

It also indicates that the living standard was at US$1404.7 in 1950 and  US$7628.8 in 2017, which implies that between 1950 and 2017 the living  standard grew at an average annual rate of 2.5% (which is on the low side).  

But if henceforth the living standard were to grow at 5.0% per year, the  Philippines will be on track to break the US$25,000 rich‐economy living  standard in 23.7 years or in 2041 (i.e., earlier than 2050 when the dependency  ratio is projected to reach its trough).   

This is certainly within the realm of what’s doable, given the experiences of  Singapore, South Korea, and Taiwan. 




But there is a cautionary tale to the demographic dividend narrative. It turns  out that the demographic dividend may be a one‐time opportunity or perhaps  one that occurs only over a century, if at all.  

Because once the dependency ratio starts to rise again (as it does for 

Singapore, South Korea, and Taiwan – see the charts), the increasing number  of dependents to be cared for will again shift resources toward consumption.  




In other words, the country has to reach rich‐economy status before the  dependency ratio bounces back up. Otherwise, it would have failed to cash in  on its demographic dividend.   


Let not the Philippines miss its chance to become a rich economy. 


How is the demographic dividend a challenge for the education sector?  

The demographic dividend requires that the working age population must be  gainfully employed before they can save.  

This means that the Filipino workforce must be globally competitive, which in  turn implies that the education sector must provide mass access to quality  education.  


Legislative Initiatives 


Navigating legislative initiatives is the second challenge. 

In particular, two acts of Congress are exerting profound, lasting effects on the  private higher education sector: RA 10533 and RA 10931. 

RA 10533 is the Enhanced Basic Education Act of 2013, which added 

kindergarten and senior high school (Grades 11 and 12) to the basic education  curriculum.  

Some of its disruptive consequences include the following: 

There was a mushrooming of senior high schools, a positive, if  disruptive development. 

Starting School Year (SY) 2016‒2017, Grade 10 completers were  diverted to senior high school, interrupting student flows to college.  

In effect, it introduced a five‐year transition period  

during which one or two year‐levels of college would not have students   and only in SY 2021‒2022 would all college year‐levels be fully 

populated again.  

As a result of the decline in their college populations,   many colleges and universities retrenched personnel. 

On the bright side, some colleges and universities took advantage of the  hiatus to send faculty members to graduate school, funded by CHED  scholarship grants. 

New curriculums for general education and major‐subject courses were  required to be designed by the CHED so that higher‐education academic  programs would be aligned with the senior high school programs. 

RA 10931, otherwise known as the Universal Access to Quality Tertiary  Education Act, has four features: it provides for  

(a) free college education in SUCs and LUCs,  

(b) free tech‐voc education and training in post‐secondary tech‐voc institutions  of TESDA, 

(c) a tertiary education subsidy (TES) to indigent students, and   (d) a student‐loan program. 


Of the four features, free tuition in SUCs and LUCs has had the biggest impact  thus far. It is segmenting the market for college education, with students who  are concerned about affordability opting to attend SUCs and LUCs while others  who are willing to pay for their schooling having heightened concerns about  the value propositions offered by private HEIs. 


Disruptive Future   

The third challenge is the disruptive future. 

In his book 21 Lessons for the 21st Century, the historian Yuval Noah Harari  warns that information technology and biotechnology – specifically, artificial  intelligence (AI), robotics, and bioengineering – are on convergent 

development paths, and their merger will radically change both the world of  work and life.  

As a consequence, many traditional jobs will disappear, and those that remain  or replace them will demand high levels of expertise. Moreover, the new jobs  will likely require human‐AI interaction, the nature of which will be constantly  changing as automation takes over more and more of what workers do. 

Harari is also concerned that, as biotechnology and AI algorithms improve, 


their applications involving big data may pose a danger to democracies and  individual liberties as well as to political and economic equality – with power  becoming concentrated on the owners of these algorithms and data troves.  

From people’s data trails, AI will increasingly be able to hack and know them  better; without people being aware of it, AI algorithms may exploit their  preferences and predilections such that the choices they make (or votes they  cast) in fact advance the hidden agendas of firms and organizations that  control AI and big data. 

How do schools prepare its students who would have to live in a world where  uncertainty is the norm, where workers may have to change professions every  ten years, where humans have to deal with super‐intelligent machines, 

engineered bodies, and with AI algorithms that manipulate their emotions and  choices? 



Recast, the challenges are about enhancing access to quality education,  exploiting opportunities to expand the delivery of education services and  improve capabilities, finetuning the value proposition of an FEU education, and 

“future‐proofing” the FEU school experience. 


To which our responses are as follows: 

1. Expand access to education by offering different price points, and provide  senior high school programs 

The FEU Group of Schools improved access to education by offering  programs at different price points, and by establishing senior high school  programs in FEU High School, FEU Alabang, FEU Cavite, and FEU Diliman  and incorporating Edustria as a joint venture with the Technological  Institute of the Philippines. FEU Alabang also admitted its first batch of  students in college, offering the same set of academic programs as FEU  Tech.   

And after a year of talks with TIP, Edustria was incorporated on August 7,  2019. 


2. Honed its student‐centered orientation 

FEU also further honed its student‐centered orientation by focusing on  the FEU schooling experience based on two important insights:  

(i) quality education is education that “capacitates” the learner to achieve  the life that he or she aspires for and  

(ii) education is an experience good. 

That quality education is a capacitating process for the aspired life draws  on the Nobel Laureate Amartya Sen’s Capability Approach to Welfare  Economics. Its implication is that a school’s product – the service  provided to each student – must be a credible transformative process  that takes the learner from who she is at entry in the school system and  building her up to who she will be at exit or graduation, i.e., her 

capacitated self. 

That education is an experience good suggests that it is a service whose  quality depends on the user experience; the more immersed and engaged  the student is in the schooling experience, the greater the likelihood that  it will be a transformative and “capacitating” journey. 



3. Improved the academic credentials and training of the faculty, particularly  in FEU Manila and FEU Tech 


In addition, FEU improved the academic credentials and training of the  faculty.  In particular, FEU Manila and FEU Tech took advantage of the  five‐year hiatus in college enrollments brought about by the addition of  Grades 11 and 12 to the basic education program and sent about 40  faculty members to graduate school.  

FEU Manila also provided extensive training in digital literacy, effective  communication, and critical thinking to its faculty, especially but not  limited to the teachers of general education subjects. 


4. Sharpened the value proposition of an FEU education 

Recognizing that RA 10931’s provision of free college education in state  universities and colleges (SUCs) and local‐government universities and  colleges (LUCs) would likely decrease the demand for private higher  education, FEU schools polished their articulation strategies and  messages to emphasize the value of quality education and the  competitive edge of having an FEU education. 


5. Reconsidered the fostering of (soft and life) skills in the light of how they  would enable FEU graduates to thrive in a world of disruptive technology  FEU schools were also urged to reconsider the fostering of (soft and life)  skills in the light of how they would enable FEU graduates to thrive in a  world of disruptive technology. 

The soft skills that are deemed particularly important for an individual to  succeed in the technology‐disrupted world of the 21st century include  critical thinking (specifically, the ability to make sense of the flood of  information, distinguish fact from fiction, synthesize disparate bits of data  to form a comprehensive and meaningful view of the world, and think  deeply), communication (the skill to clearly express in oral and written  forms ideas that are absorbed from critical thinking), collaboration (the  adeptness to work as an integral part of a team), and creativity (the knack  of being resourceful and the ability to generate original, imaginative, and  inspired ideas). 

Needed as well are the life skills to navigate a world where uncertainty is  the norm, such as adaptability (to constantly changing circumstances),  resilience (i.e., remaining emotionally stable in the face of adversities),  the entrepreneurial spirit to take the initiative, and moral sensitivity and  the capacity for self‐reflection (so as not to be easily swayed by artificial  intelligence algorithms). 



In addition to these mostly system‐wide responses, the office of the president  focused on three interrelated initiatives, which are deemed to be critical  support infrastructures backstopping the FEU school experience: 


1. FEU on Canvas,  


2. the development and use of curriculum maps, and  

3. the adoption and deployment of data science and analytics tools. 



Canvas is the learning management system used in many of the top  universities in the world, such as Harvard, Stanford, and Yale.  

The FEU Group of Schools signed on to Canvas in AY 2016‒2017 and rolled out  its extensive use as the Group’s learning platform in AY 2017‒2018. 

The objectives of FEU on Canvas are to:  

(a) organize content and delivery in an integrated and technology‐enhanced  platform that is easy and fun for both students and teachers to use and   (b) extend the administrator‐teacher‐student interfaces such that learning  outcomes improve significantly and the student school experience is  considerably enhanced. 

AY 2018‒2019 saw two important developments in Canvas. First, the 

administration of Canvas was standardized and organized across all schools. In  each school, a campus administrator was appointed to manage the academic‐

support and technical‐support activities and to communicate directly with the  Canvas Project Manager in the office of the president regarding the school’s  initiatives and concerns; the academic support group would help faculty and  students in managing courses and course content; while the technical support  group would take care of user accounts and be responsible for troubleshooting  technical problems. 


Second, administrators’ dashboards on the Canvas usage of teachers started to  be developed. The dashboards allow Canvas administrators to easily monitor  whether courses are “published” on Canvas (which is a first school day  requirement) and have content (i.e., are not just shells), and they track what  activities are being done in the courses and what features of Canvas are used. 

The next steps being planned are the development of administrators’ 

dashboards on the Canvas usage of students and the finalization of Canvas  policies and key performance indicators. 



The objective of a curriculum map is to produce the ideal graduate, specified in  terms of the complete and exhaustive list of her competencies, values, and  behavioral traits.  

Constructed by backward design, i.e., starting with the graduate attributes, the  curriculum map must be able to show where each and every intended 

outcome is developed and fostered in a student’s learning trajectory. 

The curriculum maps in FEU‐system schools will consist of four types.  

The essential map, which is common to all schools, is the DepEd or CHED  curriculum plus a few hallmarks of FEU (such as the values of fortitude,  excellence, and uprightness and an acquaintance with culture and the arts).  

The consensus map is the essential map plus aspects that stakeholders in a  school consider important in their context.  

Teachers work with the last two maps: The projected map is a schedule of  when connected sets of topics bunched in learning units are intended to be 


covered in the school calendar; the diary map is the teacher’s reflections on  how successfully (or not) his learning‐unit plans worked with the class as a  whole and with particular students. 

At the end of each school year, using the reflections in their diary maps, the  teachers hold a workshop to do a postmortem on the curriculum map as  implemented and to improve on it for the next school year.  

Teachers across subjects in a grade‐ or year‐level evaluate whether the desired  outcomes were attained and identify which strategies worked (or didn’t) with  the batch and where there could have been better integration of the 


Teachers of a common subject across grade‐ or year‐levels (i.e., “prerequisite‐

related” subjects) exchange notes on how to better prepare students for the  spiraling curriculum so that students in a lower grade‐ or year‐level are primed  for the challenges of the next level.  

For the rest of the summer, the teachers then work to tweak their projected  maps, revise their learning‐unit plans, and prepare all the materials they will  use in the next school year.  

Having a curriculum map provides at least two benefits:  

First, it sets out an explicit road map of the student’s learning journey, which  tends to be taken for granted.  

Second, it inculcates a culture of continuous improvement in the school. 


Achievements for AY 2018‐2019 

As of AY 2018‒2019, various components of the curriculum maps have been  developed and are in use.  

The basic education departments of FEU Cavite and FEU Diliman are  implementing fully developed learning‐unit plans in English, science, and  mathematics in all grade levels.  

FEU Cavite has also worked on developing its consensus map for the entire  basic education curriculum. 

In FEU Manila, the accountancy department is slowly building up the 

curriculum map of the BS Accountancy program, starting with the maps for the  basic accountancy subjects. The outputs are then shared with FEU Cavite and  FEU Diliman, ensuring that the accountancy program would have a uniform  standard throughout the FEU Group of Schools. 

In the meantime, FEU Tech has developed a web‐based curriculum‐map app. 

Its essential map component is being populated with the DepEd basic  education curriculum for all schools to share. 



It is increasingly claimed that in today’s world the most important currency is  data.  

Information technology has facilitated the proliferation, storage, and mining  and analysis of data, all of which are being harnessed to improve the user  experience of a service.  

Leveraging on this development, the FEU Group of Schools is beginning to  make intensive and extensive use of data on various aspects of the student life  cycle (from student admissions to alumni relations).  


But the project that has made the most headway in this initiative is the CEM  dashboards for teachers, which are intended to provide (third‐party) feedback  to teachers on their students’ learning outcomes. 

CEM stands for the Center for Educational Measurement. A service it provides  is the assessment of learning outcomes through standardized achievement  tests, the table of specifications of which is aligned with the learning  competencies in the DepEd curriculum.  

In the FEU Group of Schools, all students from grades 1 to 10 take the CEM  achievement tests in English, science, and mathematics twice – a pre‐test at  the start of the school year and a post‐test at the end.  

As soon as the test scores are made available by CEM (roughly a month after  these tests are taken), these test scores are quickly processed by FEU’s 

information‐technology services (ITS) unit using an automated set of programs  developed for FEU by Z‐Lîft Solutions, a data science firm. 

Each teacher of an English, science, or mathematics subject is provided with a  Microsoft Power BI (business intelligence) dashboard of the test results of his  students.  

At the start of the school year, the teacher sees how his students performed in  the subject (i.e., English, science, or mathematics) in the previous grade levels,  for the section as a whole and for each student. He is thus able to identify  which learning competencies of the previous grade levels his class has or  hasn’t attained and who among his students are fast or slow learners. The  teacher then has to formulate plans on what to do with the information: Does  he tweak his projected map to return to topics or competencies that were  poorly learned? Does he recommend tutorials for the slow learners to bring  them up to speed 




After the pre‐test scores are processed, the teacher sees in his dashboard how  prepared his class is for the learning competencies that are intended to be  developed in the current grade level, again for the class as a whole and for  individual students. He is tasked a second time to develop plans: In particular,  he has to tweak his projected map to allocate less time on topics his students  already know and more time on those that they don’t. He also has to propose  plans on what to do with individual students based on two principles: each  student should be neither left behind nor held back in their development. 




Finally, after the post‐test scores are processed, the teacher receives feedback  on his dashboard how effective his interventions were (relative to the pre‐test  results). He discusses the information with his subject coordinator and 

principal as an integral part of his professional development and of the culture  of continuous improvement of the school. He is also expected to bring his  insights to the teachers’ summer workshops on the curriculum maps. 

These dashboards and intervention templates were developed and beta‐

tested during the school year. The plan is to develop them further and extract  the teachers’ intervention data to develop a machine‐learning model that  would cull best‐practice outcomes: what interventions work best for which  competency and student‐teacher combination? 


  And so, to conclude:    

Appropriating and loosely quoting the very first words in Charles Dickens’s  Tale of Two Cities, AY 2018‒2019 for the FEU Group of Schools could be said to  be the best of times and the worst of times, … , the season of Light and 

Darkness, … the spring of hope and the winter of despair – in short, an  academic year much like any other. 

Except that we in FEU see that the positive developments in our school system  outnumber the problems we face, and we are more hopeful than ever about  the prospects of the FEU Group of Schools. 

Far Eastern Onward! 

While the President was delivering his Academic Report for Academic Year 2018-2019, the Chairman of the Board of Trustees, Mr. Aurelio R.


Montinola III, arrived and was asked to take his place in presiding over the meeting.

The Chairman thanked Dr. Alba for his most exhaustive report, and asked if there is a motion to note the President’s Academic Report.

On motion made by Architect Charlie P. Bello and duly seconded, the Stockholders unanimously adopted and approved the following resolution:

Stockholders’ Resolution No. 02-2019

“RESOLVED, That the Academic Report on Far Eastern University, Inc. of the President, Dr. Michael M. Alba, for the academic year 2018-2019 be, as it is hereby, noted.”


The next order of business was the notation of the Annual Report and approval of the Audited Financial Statements for the years ended 31 May 2019, 2018 and 2017.

At this juncture, the Chairman stood up to deliver his Message to the Stockholders.

Good afternoon, Fellow Shareholders    

We have survived the most difficult part of the K‐12 Educational Reform  program and have started the road to recovery.   

Our enrolment is back to the 40,000 level, primarily aided by the expansion  of Senior High School and the opening of FEU Alabang. 


We are rationalising our Tertiary offerings into three general influence areas 

‐ Far Eastern University, FEU Tech, and FEU Roosevelt ‐ at different price  points. 


We also have academic schedule alternatives ‐ semestral and trimestral ‐ for  wider student choice. 


 Today, we are now six legal vehicles and 10 campuses in the Greater Metro  Manila area and will increasingly refer to ourselves as the FEU Group of  Schools. 



We will also continue to expand by adding 139 classrooms in 4 buildings  across different campuses, and in renovating existing offices where  appropriate. 


Our Financials have significantly improved.  

FY 2019 Revenues are now at ₱ 3.4 billion, or 26% higher than FY 2018. 


Operating Costs and Expenses increased to ₱ 2.7 billion, or 23% higher than  last year 


Net Income, partially due to a one time non educational asset sale, rose to 

₱809 million, or 48% higher than FY 2018. 


Return on Equity increased to 8%, but this is still considerably below our 


15% ROE in 2015. 


On the Academic side, FEU continues to significantly exceed the National  Average in the last Government Board Examinations. 


We also had 16 Placers among the Top Students in each category. 

  On the Governance side, FEU won a Two Arrow Asean Corporate Governance  award from the Institute of Corporate Directors; more significantly, we were  the only educational institution among the top performing listed companies,  and within the Top Five in the Service sector. 


On the Communications side, FEU was a Professional Excellence Awardee for  the film “Be Brave, the story of Far Eastern University” at the 17th Quill  Awards. 


On the Student Experience side, we won a Best Practices in the management  of Student Formation Programs from the Philippine Practitioners Of Student  Affairs and Services 




Finally, FEU Community Service, Cultural Program, and Marketing continue  to assist in propagating a “Future Ready Learning” theme,  

and in publishing 4 books ‐ “Silanganan: the FEU Art Collection, FEU Feast,  Mindanao Harvest, and Walk Manila”. 

  Looking forward, we will expand our presence and impact in the Senior High  School space and continue our rationalisation of our Tertiary offerings. 


We will continue our Facilities Improvement Cycle and focus on complying  with the new SEC circular on Sustainability reporting starting 2020. 


Our thanks as always to all our supportive Board of Trustees, management,  students, faculty, parents, regulators, and the educational community around 




We are also pleased to report that your Board will be recommending a Stock  Dividend for Shareholders Approval later in this meeting. 


As always, we need all our stakeholders to “Be Brave” in these challenging  times. 


The Chairman then opened the floor for questions or comments from the Stockholders on the Annual Report or the Audited Financial Statements.

Since there was no question or comment, the Chairman thanked the Stockholders and asked for a motion for the notation of the Annual Report and approval of the Audited Financial Statements.

On motion made by Ms. Elena F. Gemzon and duly seconded, the Stockholders adopted and approved the following resolution:

Stockholders’ Resolution No. 03-2019

“RESOLVED, That the Annual Report covering the operations of Far Eastern University, Inc. (FEU) for the fiscal year 2018-2019 be, as it is hereby, noted, and that the audited Consolidated Financial Statements of FEU and its Subsidiaries and the audited separate Financial Statements of FEU for the years ended 31 May 2019, 2018 and 2017 be, as it is hereby, approved.”

Voting Results Voted in Favor Voted Against Abstained

Number of Shares Voted 13,808,677 0 66,989

Percent of Shares Voted 83.81% 0% 0.41%


The next item in the Agenda was the approval, ratification and confirmation of all acts and resolutions during the past year.

Thereupon, on motion made by Mr. Marco P. Gutang and duly seconded, the Stockholders adopted and approved the following resolution:

Stockholders’ Resolution No. 04-2019

“RESOLVED, That all the acts and resolutions of the Board of Trustees, Board and Management Committees, and Management and other Officers of Far Eastern University, Inc.

taken or adopted since the Annual Meeting of Stockholders last 20 October 2018 until today, 19 October 2019, be, as it is hereby, approved, ratified and confirmed.”


Voting Results Voted in Favor Voted Against Abstained

Number of Shares Voted 13,808,677 0 66,989

Percent of Shares Voted 83.81% 0% 0.41%


The next order of business was the approval of the increase in authorized capital stock, the stock dividend declared by the Board of Trustees, and the amendment of Article Seventh of the Amended Articles of Incorporation.

Upon the request of the Chairman, the Chief Finance Officer, Mr. Juan Miguel R. Montinola, recalled that Far Eastern University Inc. (FEU) publicly listed in 1986 with an authorized capital stock of ₱20,000,000.00 (₱20 Million)

compared to FEU’s present authorized capital stock of ₱2,000,000,000 (₱2 Billion). He noted that in a span of 3 decades, the increase was 100 times,

reflecting the progress and growth of the university. He emphasized that Management would like to continue to explore growth opportunities. 


The CFO then endorsed to the Stockholders, for their approval, the increase of Far Eastern University’s authorized capital stock, from

₱2,000,000,000.00 to ₱5,000,000,000.00. 


Mr. Juan Miguel R. Montinola, continued to discuss the declaration of Stock Dividend. From recollection, the CFO reported that Stock Dividends were declared approximately every 3 years since 1993 on top of cash dividends. The last stock dividend was however declared 5 years ago. In fact the absence of such stock dividends was the subject of queries in past Annual Stockholders’



The CFO was pleased to present to the Stockholders, for their approval, the declaration of a 46% Stock Dividend. 

On motion made by Ms. Fe V. Canilao and duly seconded, the Stockholders adopted and approved the following resolutions:

Stockholders’ Resolution No. 05-2019

“RESOLVED, AS IT IS HEREBY RESOLVED, that the stockholders of Far Eastern University, Inc. (the ‘Corporation’) approve and ratify, as they hereby approve and ratify, the declaration of a stock dividend of forty six percent (46%) on the outstanding capital stock of the Corporation, or a total stock dividend of up to Seven Million Five Hundred Seventy Nine Thousand Four Hundred Fourteen (7,579,414) shares of common stock, eliminating any fractional shares, payable out of the unrestricted retained earnings of the Corporation as of 31 May 2019, which stock dividends shall be sourced from the increase in authorized capital stock of the Corporation, and payable to stockholders of record as of a record date to be fixed and approved by the Securities and Exchange Commission (the ‘Commission’)


after all clearances and approvals by the Commission shall have been secured, on such payment date as shall be fixed by the Board of Trustees of the Corporation together with or after the fixing and approval of the record date.

RESOLVED, FURTHER, that, subject to the approval of the Commission, the stockholders of the Corporation approve and ratify, as they hereby approve and ratify, an increase in the authorized capital stock of the Corporation from Two Billion Pesos (₱2,000,000,000.00) divided into Twenty Million (20,000,000) shares of common stock, with a par value of One Hundred Pesos (₱100.00) per share, to Five Billion Pesos (₱5,000,000,000.00) divided into Fifty Million (50,000,000) shares of common stock, with a par value of One Hundred Pesos (₱100.00) per share.

RESOLVED, FURTHER, that, to reflect said increase in the authorized capital stock of the Corporation, the stockholders of the Corporation approve and ratify, as they hereby approve and ratify, an amendment to Article SEVENTH of the Articles of Incorporation of the Corporation such that the same shall read as follows:

‘SEVENTH: - That the authorized capital stock of the corporation is FIVE BILLION PESOS (₱5,000,000,000.00), Philippine Currency, divided into Fifty Million (50,000,000) shares, with a par value of One Hundred Pesos (₱100.00) per share.’

RESOLVED, FINALLY, that any one (1) of the following officers of the Corporation be authorized to sign any and all documents and resolutions in order to effect the foregoing resolutions:

Name Position Dr. Michael M. Alba President

Mr. Juan Miguel R. Montinola Chief Finance Officer

Atty. Gianna R. Montinola Senior Vice President, Corporate Affairs Ms. Rosanna E. Salcedo Treasurer

Voting Results Voted in Favor Voted Against Abstained

Number of Shares Voted 13,874,762 0 904

Percent of Shares Voted 84.21% 0.00 % 0.01%


The next matter in the Agenda was the election of the members of the Board of Trustees, including Independent Trustees, for the ensuing year.


At the request of the Chairman, the Chairman of the Nomination Committee, Dr. Edilberto C. De Jesus, reported that in accordance with the Amended By-Laws and applicable rules and regulations, the following Stockholders were duly nominated for election as members of the Board of Trustees for the term 2019-2020 or until their respective successor is duly elected and qualified:

 Dr. Lourdes R. Montinola

 Mr. Aurelio R. Montinola III

 Dr. Michael M. Alba

 Dr. Edilberto C. De Jesus

 Ms. Angelina P. Jose

 Mr. Antonio R. Montinola

 Ms. Sherisa P. Nuesa

 Mr. Jose T. Sio

 Dr. Paulino Y. Tan

Of the above-named nominees, three (3) were nominated as Independent

Trustees, namely:  Dr. Edilberto C. De Jesus,  Ms. Sherisa P. Nuesa, and

 Mr. Jose T. Sio.

Dr. De Jesus stated that the Nomination Committee had - at a meeting called for the purpose of vetting the Trustee-nominees - reviewed the qualifications of all the nominees and concluded that all of the nine (9) nominees have met all the requirements to be elected as Trustee and are, therefore, qualified to serve as FEU Trustees. All the nominees have given their consent to their nomination.

On motion made by Ms. Maria Carmencita A. Sayo and duly seconded, the Stockholders adopted and approved the following resolution:

Stockholders’ Resolution No. 06-2019

“RESOLVED, That there being only nine (9) nominees, all votes be cast, as they are hereby cast, equally, and that the nine (9) nominees named below be henceforth declared as the elected members of the Board of Trustees of Far Eastern University, Inc.

for the ensuing term 2019-2020 or until their successors are duly elected and qualified:

 Dr. Lourdes R. Montinola Trustee

 Mr. Aurelio R. Montinola III Trustee

 Dr. Michael M. Alba Trustee

 Dr. Edilberto C. De Jesus Independent Trustee

 Ms. Angelina P. Jose Trustee

 Mr. Antonio R. Montinola Trustee

 Ms. Sherisa P. Nuesa Independent Trustee

 Mr. Jose T. Sio Independent Trustee

 Dr. Paulino Y. Tan Trustee

As tabulated by the Office of the Corporate Secretary - with the assistance of Stock Transfer Services, Inc. and in the presence of the representatives of the


External Auditor, Punongbayan & Araullo - the votes received by the nominees and their percentages to total shares voted, in person or by proxy, were as follows:

Trustee Voted in Favor Voted Against Abstained

 Dr. Lourdes R. Montinola 13,874,762 84.21% 0 0.00% 904 0.01%

 Mr. Aurelio R. Montinola

III 13,874,762 84.21% 0 0.00% 904 0.01%

 Dr. Michael M. Alba 13,874,762 84.21% 0 0.00% 904 0.01%

 Dr. Edilberto C. De Jesus 13,874,762 84.21% 0 0.00% 904 0.01%

 Ms. Angelina P. Jose 13,874,762 84.21% 0 0.00% 904 0.01%

 Mr. Antonio R. Montinola 13,874,762 84.21% 0 0.00% 904 0.01%

 Ms. Sherisa P. Nuesa 13,874,762 84.21% 0 0.00% 904 0.01%

 Mr. Jose T. Sio 13,874,762 84.21% 0 0.00% 904 0.01%

 Dr. Paulino Y. Tan 13,874,762 84.21% 0 0.00% 904 0.01%


The next item in the Agenda was the appointment of External Auditor for the fiscal year 2019-2020.

The Chairman requested the Chairman of the Audit Committee, Ms.

Sherisa P. Nuesa, to explain the appointment of the External Auditor.

Ms. Nuesa informed the Stockholders that the Audit Committee (AuditCom) evaluated the performance of FEU’s present independent auditor, Punongbayan & Araullo, and stated that the AuditCom is satisfied with their performance.

Hence, the AuditCom and the Board of Trustees have agreed to endorse to the Stockholders, for their approval, the reappointment of Punongbayan &

Araullo, Certified Public Accountants and the Philippine member firm of Grant Thornton International, Ltd., as the External Auditor of FEU for the fiscal year 2019-2020. The fees to be negotiated by Management.

On motion made by Ms. Marites G. Dacayanan and duly seconded, the Stockholders adopted and approved the following resolution:

Stockholders’ Resolution No. 07-2019

“RESOLVED, That Punongbayan & Araullo, Certified Public Accountants and the Philippine member firm of Grant Thornton International, Ltd., be, as it is hereby, reappointed as the External Auditor of Far Eastern University, Inc. for the fiscal year 2019-2020, and that the External Auditor’s fees shall be negotiated by Management.”

Voting Results Voted in Favor Voted Against Abstained

Number of Shares Voted 13,871,440 3,322 904


Percent of Shares Voted 84.19% 0.02% 0.01%


After confirming that there were no other matters that require consideration by the Stockholders, the Chairman then opened the floor for questions and comments from the Stockholders.

Mr. Stephen Soliven noted the cash and cash equivalents in the Consolidated Statements of Financial Position of Far Eastern University, Inc. and Subsidiaries which was at ₱1,520,000,000. However, he expressed concern over the separate Far Eastern University, Inc. Statements of Financial Position which

showed dwindling cash and cash equivalents for the periods of 2017 at

₱319 Million, 2018 at ₱237 Million, and 2019 at ₱176 Million. Mr. Soliven also noted the increasing receivables and asked if this is an indication of laxity in the collection process?


In response, the CFO explained that the students of the parent company are all in the tertiary level and schools offering Tertiary education are the most affected by the K-12 program. He further clarified that the effect of K-12 is over a 5-year period with normal student population only achieved on the 6th year.

AY 2018 -2019 which are the operations presented to Stockholders is only the third year of the K-12 implementation.


The CFO added that this scenario prompted FEU to embark on the start-up of the Senior High School and FEU Alabang, the acquisition of Roosevelt College, Inc., and the expansion of other entities. These business actions are mitigating the effects of K-12.


On the query about the collection process, the CFO assured Mr. Soliven and the Stockholders that FEU has very good collection practices, classified as industry best right with a write off rate below 2%.


He projected that the condition of the parent company will be corrected as the incoming population of Freshmen increase.


The Chairman, on behalf of the Board of Trustees and Management, extended his thanks to all the Stockholders for their continuing support and confidence in Far Eastern University.


There being no further business to transact, the Annual Stockholders’

Meeting was - on motion made by Ms. Helen A. Neo and duly seconded - adjourned at 4:20 p.m.


Corporate Secretary

Attested by:



Chairman of the Board

Mga Sanggunian


Far Eastern University, Incorporated FEU PSE Disclosure Form 17-7 - Statement of Changes in Beneficial Ownership of Securities References: SRC Rule 23 and Section 17.5 of the

2 A person will be deemed to have an indirect beneficial interest in any equity security which is: A held by members of a person's immediate family sharing the same household; B