Rules on Compensation of Directors of GOCCs and GFIs

Posted on March 2, 2011 by Imelda A. Manguiat President Aquino issued Executive rder !o. 2" on #ebruary 10, 2011 to $rescribe the rules regarding the com$ensation o% the members o% the board o% directors or trustees o% govern&o'ned and controlled cor$orations () **s+, including government %inancial institutions. ,his is in res$onse to the re$orts that directors o% ) **s have been giving themselves excessive salaries, $er diems, allo'ances and bonuses. -nder the E , ) **s 'ill be classi%ied based on their assets and revenues, as %ollo's. *lassi%ication Assets (P+ A 1 * 3 E 0 100 1illion 0 22 1illion but less than 100 1illion 0 2 1illion but less than 22 billion 01 1illion but less than 2 1illion 4ess than 1 1illion /evenues (P+ 0 10 1illion 0 2.2 1illion but less than 10 1illion 0 200 Million but less than 2.2 1illion 0 100 Million but less than 200 M 4ess than 100 Million

,he com$ensation o% directors or trustees shall be limited to $er diems %or attending meetings. ,hey may also be granted $er%ormance&based incentives based on agreed&u$on standards a$$roved by the board and the President. 5o'ever, annual retainer %ees, stoc6 o$tion $lans, and any other salaries, allo'ances, bene%its or other bonuses are not allo'ed, unless s$eci%ically authori7ed by la' or the charter o% the ) ** and a$$roved by the President, and the total o% all the %oregoing com$ensation and $er diems shall not exceed the limits set under the order. Pursuant to the E , the maximum $er diem %or attending board meetings shall be as %ollo's. *lassi%ication A 1 * 3 E Maximum $er meeting (P+ "0,000 20,000 12,000 10,000 2,000 Maximum $er year (P+ 890,000 ":0,000 ;90,000 2"0,000 120,000

,hey may also be given $er diems %or attending committee meetings ranging %rom P2",000 $er meeting %or *lass A ) **s to P;,000 $er meeting %or *lass E ) **s. 3e$artment secretaries, undersecretaries and other government o%%icials 'ho are ex&o%%icio members o% the board o% ) **s shall not be entitled to the %oregoing $er diems or incentives and any com$ensation received by ex&o%%icio board members o% subsidiaries o% ) **s or $rivate cor$orations 'here the ) ** has investments shall accrue to the ) ** concerned. ,he E seems to have addressed the issue regarding excessive com$ensation 'hich the ) **s have been granting to their board members. ,he %ervent ho$e o% the ordinary citi7en, o% course, is that these rules 'ill be %aith%ully im$lemented and that the Aquino government 'ill have the $olitical 'ill to en%orce the la' regardless o% 'ho the $ersonalities involved are.