QuestionsQuestions (OP Executive Order No. 24)
It cites the 1987 Constitution’s mandate that public office is a public trust and requires accountability and modest living; and Republic Act No. 6713 (Code of Conduct) requiring public officials to prioritize public interest and use government resources efficiently and honestly to avoid waste.
A GOCC is an agency organized as a stock or non-stock corporation with functions relating to public needs, owned by the Government directly or through instrumentalities, wholly or at least 51% of capital stock (for stock corporations).
Chartered GOCCs are created and vested with corporate functions by a special law (including GFIs). Non-chartered GOCCs are organized and operating under Batas Pambansa Blg. 68 (Corporation Code).
It applies to members of the Board of Directors/Trustees of all GOCCs (with or without charter), including their subsidiaries, regardless of coverage by the Salary Standardization Law; it excludes the Bangko Sentral ng Pilipinas. It also excludes representatives of GOCCs in private corporations where the GOCC has investments.
No. Department Secretaries, Undersecretaries, Assistant Secretaries and other government officials who are ex-officio board members (including authorized alternates/representatives) are not entitled to any additional compensation for their services as such.
Compensation for ex-officio board members of subsidiaries or private corporations accrues to the GOCC represented. Compensation for appointive/elective board members representing the GOCC in a private corporation must not exceed the allowable compensation of the members of the GOCC represented; any excess must accrue and be remitted to the GOCC represented within 15 days.
The system must be simple and easy to understand/manage; consistent with best practices; consider the GOCC’s peculiar nature (size, strategic positioning, operations, financial capability); be subject to periodic review; and compensation must be just/equitable, generally comparable with private sector for comparable work, performance-based with consideration of performance, fair and reasonable with fiscal realities, and subject to approval of the President.
Generally no—EO No. 24 states salaries, allowances, bonuses, and other benefits are not allowed unless specifically authorized by law or Charter and approved by the President. Even then, the total of such compensation and per diems must not exceed the limits.
Allowed components are: (1) per diems (subject to limits); (2) performance-based incentives (allowed if based on agreed metrics and approved, with conditions); while annual retainer fees and stock plans are not allowed.
For classification A: maximum per diem per meeting is PHP 40,000; maximum per year is PHP 960,000.
For classification C: maximum per diem per committee meeting is PHP 9,000; maximum per year is PHP 216,000. Committee per diems must be at most 60% of the board meeting per diem amount.
The board chairperson may receive not more than 20% of the amount set for members of the Board of Directors/Trustees.
Incentives must be based on agreed metrics; must be endorsed by the Department of Finance and the DBM; are subject to and upon approval by the President; a rating system must identify when targets are met or exceeded; and incentives can be paid only if the GOCC complied with its statutory obligations.
Necessary expenses to attend meetings and discharge official duties shall be paid directly by the GOCC. If advancement is necessary only due to exigency of service and subject to submission of receipts, reimbursement is allowed only for specified items (transportation to/from meetings, travel expenses during official travel, communication expenses, and meals during business meetings) subject to budgeting, accounting, and auditing rules.
Chartered GOCCs’ boards are directed to comply with EO No. 24’s provisions. Non-chartered GOCCs (including subsidiaries) must pass board resolutions adopting or reiterating EO No. 24’s provisions governing compensation and reimbursable expenses.
Non-compliance is considered insubordination or neglect of duty and other administrative offenses as may be warranted, to be dealt with accordingly.
Upon COA determination and report that a board member received amounts or property beyond what is allowed or received something that accrues to the GOCC represented, the member must immediately return the same to the concerned GOCC.
Requests for clarifications must be directed to the Task Force on Corporate Compensation and must be made in writing.