Family-owned businesses will eventually have to transition to the next generation. It can be tricky, as in the case of Lucio Tan’s “peculiar family situation,” as described by his daughter, Vivienne Tan. In 2019, succession became an urgent agenda with the sudden passing of Lucio Tan Jr, and so Lucio Jr’s eldest son, Lucio III, was summoned to Manila.

He brought with him sterling academic credentials: an engineering degree (graduating in the top five per cent of his class), a master's in computer science at the prestigious Stanford University and an MBA. He also boasts of work experience, having involved himself in software engineering while living in the United States.

Lucio Tan III was eased into the family conglomerate as president and COO of Tanduay Distillery, along with other key positions in various business units. In 2022, he was appointed vice president and COO of the LT Group. A publicly traded Manila-based firm, LT Group divisions include beer, liquor, property businesses and a controlling stake in the Philippine National Bank. His entry comes at a difficult time, but Tanduay’s phenomenal growth despite the pandemic, and PAL’s strong last quarter forecast less than a year from exiting bankruptcy boosted Tan III’s image as an able heir apparent.

In May 2023, Tan III, known to be close to his grandfather, was appointed president of PAL Holdings Inc, a position once held by the former. Tan I, however, remains Chairman and CEO. Though Tan III has taken over his grandfather’s post, Tan himself retains his role as chairman and CEO.