MANILA, Philippines—Cabinet members and other government officials who sit on the boards of government firms will no longer be entitled to any additional compensation for their functions in the state corporations, President Aquino has ordered.
Executive Order No. 24, signed on Thursday by Mr. Aquino, also disallowed annual retainer fees and stock plans for all board members of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs).
The order also set the maximum per diems for each board member based on the volume of a firm’s assets and the amount of its revenues. The order classified GOCCs and GFIs based on each one’s assets and revenues.
Stop-gap
“This EO will serve as a stop-gap measure to rein in excessive pay for GOCC board of directors and trustees until a law is passed mandating such,” Executive Secretary Paquito Ochoa Jr. said.
Ochoa said one such measure is Senate Bill No. 2640 or the proposed GOCC Governance Act of 2011 that Sen. Franklin Drilon authored and is now pending in Congress.
The EO is the product of months of deliberations by the Department of Budget and Management and the Department of Finance on how board members of state firms should be compensated.
President Aquino earlier had two executive orders suspending the bonuses of board members of GOCC/GFIs while the guidelines on their compensation, as now embodied in EO 24, was being crafted.
Under EO 24, appointive or elective board members may receive compensation as set forth herein unless specifically prohibited by law or the firm’s charter
Source: Philippine Daily Inquirer
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