P-Noy signs GOCC law

MANILA, Philippines –  President Aquino signed into law yesterday the bill standardizing the salaries and bonuses of executives in government-owned and controlled corporations (GOCCs), Malacañang said over the weekend.

“It (GOCC bill) will not be a policy anymore, but it will already be a matter of law,” said deputy presidential spokesperson Abigail Valte in an interview with government-run radio dzRB.

The GOCC Governance Act of 2011 was pushed by Sen. Franklin Drilon, an ally of Aquino in the Liberal Party.

Aquino earlier issued Executive Order 24 to standardize the pay and other benefits received by board members and trustees of GOCCs and government financial institutions (GFIs). The order was intended to limit the excessive pay and bonuses for board members and trustees of GOCCs and GFIs until a law mandating such is passed.

Malacañang said it consulted with the departments of Finance and Budget and Management before issuing the order.

The order covers board members and directors of GOCCs and GFIs regardless of classification. Their compensation shall be subject to the approval of the President.

It also covers representatives of GOCCs in the boards or private corporations in which the government has investments. The order stipulates that the compensation system for GOCCs and GFIs will be consistent with pay practices in private corporations and would depend on their size, strategic positioning, nature of operations and financial capability. The maximum amount of performance-based incentives to be granted to members or trustees should depend on the size of the GOCC or GFI and should not exceed 50 percent of a board member’s annual compensation for outstanding performance. Reimbursable expenses cover those incurred in the performance of official functions such as transportation for meetings, travel cost for official trips, and communication and meal expenses for business meetings. –Delon Porcalla (The Philippine Star)