TAIPEI (Taiwan News) – Taiwanese electronics conglomerate TECO Electric and Machinery Co. (TECO) is in the middle of a proxy battle ahead of its upcoming annual general meeting on May 24.
Eugene Huang (黃育仁), the grandson of TECO founder Lin Ho-yin (林和引), has released his vision for the company’s future with the launch of the FutureTECO campaign. Huang, whose father Theodore Huang was chair for many years but resigned from his board seat in 2021, has asked shareholders to support his eight nominees for TECO’s board at the upcoming general meeting.
Huang is concerned that TECO has lost its way by pursuing unprofitable business segments rather than consolidating its position as a leader in motor manufacturing. Besides its core motor business, TECO is also involved in construction, financial investment, dining, logistics, and services. For example, the Mos Burger chain is partly owned by TECO.
The FutureTECO campaign has nominated eight candidates from AI, technology, material sciences, and finance. FutureTECO has nominated four non-independent candidates who are already TECO directors: Huang Li-chong (黃立聰), Ho Chih-yuan (侯智元), Fang Song-ren (方頌仁), and former TECO manager Chen Liang-chien (陳良鑑), and four independent directors, Lee Ming-shiuan (李明萱), Wu Yu-hsuan (吳郁萱), Huang Chao-ching (黃昭景), and Yang Po-min (楊博閔).
Huang believes the proposed board has the depth and expertise to refocus the company on its core motor business. Huang said, “The FutureTECO campaign has been designed as a measured, targeted one, primarily directed at modernizing the skills and experience on TECO’s board.”
FutureTECO aims to align the company’s governance layer with the contemporary thinking and oversight skills that will equip the company to prosper in a rapidly changing competitive and technological environment. Huang believes that the change in board and strategy will attract new shareholders and rebuild the international shareholder base, which has crumbled from 18.4% to 5.9% since the end of 2020.
However, the FutureTECO campaign has an uphill battle ahead of it. A large proportion of TECO shares are controlled by Walsin Lihwa Group and Lin Chen-hai (林陳海), through Par Jau Asset Management and Jaryuan Investment Co. Ltd.’s Chiao Yu-lon (焦佑倫), the chair of Walsin Lihwa, who has been instrumental in assembling a slate of eleven directors on behalf of TECO, including his close friends, Morris Li (利明献) and Shen Rong-jin (沈榮津), leaders currently at the helm of CTBC Bank and Taiwan Financial Holdings, respectively.
The FutureTECO group hopes that their message for change will win over international and domestic investors who agree that TECO needs to adapt to the constantly evolving technological landscape.
Founded in 1956 as an industrial motor manufacturer, TECO has evolved into a major business group, spanning heavy electric equipment, home appliances, information technology, communications, electronic components and parts, infrastructural engineering, financial investment, dining, and services.
TECO-Westinghouse is a world leader in manufacturing electric motors and generators for the petrochemical, electric utility, pulp and paper, water and wastewater treatment, air conditioning, marine, mining, and metals industries.
TECO has over 100 affiliate companies globally and operates business operations in more than forty countries. In 2023, TECO had 14,000 global employees and revenues of NT$59.4 billion (US$1.83 billion).
