President Aquino issued Executive Order No. 24 on February 10, 2011 to prescribe the rules regarding the compensation of the members of the board of directors or trustees of govern-owned and controlled corporations (GOCCs), including government financial institutions. This is in response to the reports that directors of GOCCs have been giving themselves excessive salaries, per diems, allowances and bonuses.
Under the EO, GOCCs will be classified based on their assets and revenues, as follows:
Classification Assets (P) Revenues (P)
A ≥ 100 Billion ≥ 10 Billion
B ≥ 25 Billion but less than 100 Billion ≥ 2.5 Billion but less than 10 Billion
C ≥ 5 Billion but less than 25 billion ≥ 500 Million but less than 2.5 Billion
D ≥1 Billion but less than 5 Billion ≥ 100 Million but less than 500 M
E Less than 1 Billion Less than 100 Million
The compensation of directors or trustees shall be limited to per diems for attending meetings. They may also be granted performance-based incentives based on agreed-upon standards approved by the board and the President. However, annual retainer fees, stock option plans, and any other salaries, allowances, benefits or other bonuses are not allowed, unless specifically authorized by law or the charter of the GOCC and approved by the President, and the total of all the foregoing compensation and per diems shall not exceed the limits set under the order.