Question & AnswerQ&A (EXECUTIVE ORDER NO. 24)
The primary objective is to prescribe rules governing the compensation of members of the Board of Directors/Trustees in government-owned or controlled corporations (GOCCs), ensuring transparency, accountability, prudence in government spending, and rationalization of compensation to prevent abuse.
Section 1, Article XI of the 1987 Constitution which states that public office is a public trust and that public officers and employees must be accountable, serve responsibly and with integrity, loyalty, efficiency, patriotism, and justice.
A GOCC is any agency organized as a stock or non-stock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government directly or through its instrumentalities wholly or majority owned (at least 51% of capital stock).
Department Secretaries, Undersecretaries, Assistant Secretaries, and other government officials who serve as Ex-Officio Board Members, including their authorized Alternates/Representatives, shall not receive any additional compensation for their board services.
Compensation may include per diems, performance-based incentives based on agreed metrics, but excludes annual retainer fees, stock plans, salaries, allowances, bonuses, and other benefits unless authorized by law or charter and approved by the President.
GOCCs are classified by size based on assets and revenues into five categories: A, B, C, D, and E with specific asset and revenue thresholds ranging from over 100 billion pesos to less than 1 billion pesos.
The maximum per diem per board meeting for Category A GOCCs is 40,000 pesos, with an annual maximum of 960,000 pesos.
Non-compliance shall be considered insubordination, neglect of duty, or other administrative offenses and will be dealt with accordingly under applicable rules.
Upon report and determination by the Commission on Audit (COA), the member must immediately return such amounts or property to the GOCC concerned (restitution).
No, performance-based incentives are allowed but only based on agreed metrics, with endorsement by the Department of Finance and Budget and approval by the President, and only if the GOCC complies with its statutory obligations.
Appointive or elective members representing a GOCC may receive compensation from such private corporations but the amount shall not exceed the allowable compensation for GOCC board members. Any excess must accrue to the GOCC represented.
Reimbursable expenses include actual and reasonable transportation to and from meetings, official travel, communication expenses, and meals during business meetings, subject to submission of receipts and budget/accounting rules.
No, it explicitly excludes the Bangko Sentral ng Pilipinas from its coverage.
The President, pursuant to Section 17, Article VII of the 1987 Constitution, exercises control over GOCCs and approves compensation structures and increases for board members.
No, annual retainer fees and stock plans are expressly not allowed under this Executive Order.