Aquino suspends allowances and bonuses for GOCC execs

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Aquino suspends allowances and bonuses for GOCC execs - INQUIRER.net, Philippine News for Filipinos

MANILA, Philippines—(UPDATE) President Aquino on Wednesday ordered the suspension until Dec. 31, 2010 of all allowances, bonuses and incentives of board members of government-owned and -controlled corporations, including government financial institutions.

In issuing Executive Order No. 7, Mr. Aquino also stopped increases in the salaries and other benefits of board members and operating officers and regular employees exempted from the Salary Standardization Law.

“The grant of allowances, bonuses, incentives and other perks to members of the board of directors/trustees of GOCC’s and GFI’s, except reasonable per diems, is hereby suspended until Dec. 31, 2010, pending the issuance of new policies and guidelines on the compensation of these board members,” the EO states.

The order signed and released on Wednesday also creates a Task Force on Corporate Compensation that will review all remuneration granted to members of the boards, officers and rank-and-file employees of GOCC’s and GFI’s.

One of the functions of the task force is to recommend measures “to rationalize the compensation system and the use of discretionary funds in specific GOCC’s and GFI’s including putting a cap on total compensation.”

According to the EO, the considerations in setting the compensation levels in GOCC’s and GFI’s include: coverage of the GOCC/GFI under the salary standardization law; strategic position of the GOCC/GFI in its industry; proprietary nature of operations; requirement for highly technical or specialized skills and expertise in corporate operations; comparability of the compensation package with prevailing industry practices; financial capability and viability of the GOCC/GFI; proportion of personal services expenditures to total corporate operating budget; privatization plans and other relevant factors.

“The TFCC shall submit a report on its findings and recommendations to the President within 90 days from issuance of this order,” the order states.

President Aquino also ordered all GOCC’s and GFI’s to submit to the task force information on all salaries, allowances, incentives and other benefits under both direct and indirect compensation, as well as discretionary funds.

The rationalization order also covers provident fund benefits, additional health insurance and other benefits.

The EO takes effect immediately upon publication.

“(While) government-owned and -controlled corporations and government financial institutions by the nature of their operations are accorded greater flexibility to funcion properly and efficiently under a market environment, such flexibility shall nevertheless be consistent with the precept of public accountability,” the EO says.

The EO also adverts to Congress’ Joint Resolution No. 4 s. 2009 stating that agencies exempted from the salary standardization law “shall observe the policies, parameters and guidelines governing position classification, salary rates, categories and rates of allowances, benefits, incentives prescribed by the President.”

The order came after a Senate inquiry into the compensation packages of some GOCC’s and GFI’s revealed they far exceed those of other government officials and staff.

A Senate resolution called on President Aquino to suspend the payment of huge compensation to the concerned GOCC and GFI officials and employees.

[cheska]

TOo much ra pud siguro ilang bunoses and allowances... why not i-fair tanang government employees para walay mahay... all employees are important gud, coz if not, why hiring them

[jesselyn]

subra ra pud kaau oi!

[cebulifer]

pastilan pud ng bonuses sa MWSS!!! 25 month bonus? 13th month bonus lang as mandated in the law! makagaba na pud ng 25th month oi!

[bot_yok]

grabe ra pud na 25th month oi... dah mirisi!

[KASAAC]

sakto rapud iyang gibuhat... kahayay ana nila ah dagko kaau ug mga bonuses bisan unsa nalang ang ngalan tsk tsk

[trax]

maau rani kai grabe sad kaau na cla ug sweldo oi

[jake_smack11]

nana jud sakto nabuhat c noynoy...hehhee

[cobraKing]

kadaghan gud ani nila ug bonus..mayra sad ug gi suspenso oi..or banned nlng kaha na ilaha mga bonus..pra patas tanan...

[Romeojin]

dapat man gud ipareho ang suweldo ng mga companies either private or public sector. di man gud ka compete ang GOCC in terms of salary sa mga private companies mao niabot na sa 24 months pay . ok ra cguro i cut yung bonus sa taas pero apil man ang mga regular employees unsaon ilang life, mo wonder pa mo nganong gamay nalang geologist working sa government.. gamay suweldo. magselos pa ning uban politiko sa kadako suweldo nila compared sa ila, like 40K lang ang senator.. tan-awon pud ninyo na open kaau ning mga public officials to corruption.

Im partially in favor in cutting the salary considering pud sa atong budget deficit. but do you know penoy's budget sec oppose it.

MANILA, Philippines - Budget Secretary Florencio Abad is opposing proposals to cap compensation for executives of government-owned and -controlled corporations (GOCCs), as well as government financial institutions (GFIs).
In an interview with ANC, Abad instead suggested a review of the pay scale of GOCCs and GFIs. He said this should be patterned after corporations in the private sector.
"Enacting a law may be too rigid. This may require them to be competitive with the private sector and therefore, if you put a legislative cap on them, it will be difficult to make changes later on," Abad said.
"But you have too look at the comparison between what do GOCC and GFI officials make in relation to their counterparts in non-government agencies, and also in relation to their counterparts in the private sector," he added.
Some senators had proposed a salary cap for state-run firms after huge paychecks, allowances, bonuses and perks of certain government officials were exposed.
In a hearing of the Senate committee on finance on Tuesday, its chairman, Sen. Franklin Drilon, recommended the creation of appropriate legislative measures to rationalize and standardize to reasonable level the compensation package of officials and board directors of GOCCs and GFIs.
Drilon said this will be done to promote public trust, and protect much-needed government funds.
“In these difficult times, when workers both in public and private sectors are clamoring for more decent pay, such reports of excessive and unwarranted benefits and privileges being enjoyed by top officials and board directors of GOCCs and GFIs only exacerbate the level of discontent on the part of our poor countrymen,” he explained.
“[This] seemingly anomalous situation has been going on for too long, primarily because of the powers vested in the boards of these institutions to determine and fix their own compensation and benefits.”
Drilon has filed a resolution directing the committee on finance and committee on government corporations and public enterprises to conduct an investigation into the excessive benefits received by top government officials.

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