PRRD limits incentive rates for GOCC directors

MANILA The Office of the President has approved the revised Interim Performance-Based Incentive (PBI) System for the appointive directors of Government-Owned or -Controlled Corporations (GOCCs), as proposed by the Governance Commission for GOCCs (GCG), setting the limits and conditions on its grant.

The grant of the incentive was previously suspended following President Rodrigo R. Duterte's directive to study and control the allowances of GOCCs and other government entities for transparent and corrupt-free governance.

Under the revised system, an appointive director merits to receive PBI only if the GOCC achieved a weighted average of at least 90 percent in its Performance Scorecard for the applicable year; and if it complied with the good governance conditions set by the Inter-Agency Task Force and the GCG.

In addition, the appointive director must have attended at least 90 percent of all duly called for board and committee meetings; rendered at least three months of aggregate service as an appointive director in any GOCC for the applicable calendar year; submitted all the requirements for the Director Performance Review; and has not been found guilty of an administrative and/or criminal case related to his/her work.

The maximum PBI amount that an appointive director may receive varies depending on its asset and revenue sizes based on the GOCC's classification under Executive Order 24, series of 2011.

With the revisions, the maximum PBI amount has decreased by 67 percent. For the largest GOCCs (Class A), the maximum PBI has been reduced to PHP512,000 from the previous maximum amount of PHP1,536,000. On the other hand, the maximum PBI for the smallest GOCCs (Class E) is now PHP64,000, compared to the previous PHP192,000.

The funding for the PBI shall be charged to the respective corporate funds of GOCCs, subject to the approval of their respective Governing Boards per applicable laws, rules, and regulations.

With the upcoming State of the Nation Address (SONA), the revised PBI is another accomplishment by the President from his 2017 SONA, stating that salaries, allowances, incentives, benefits and bonuses across the GOCCs will have to pass by the Office of the President.

The limitations set would allow these government corporations to allocate more funds to better serve the public. (PR)

Source: Philippines News Agency

Related posts