Duterte approves reduced performance-based incentives for GOCC execs
By Arjay L. Balinbin, Reporter
PRESIDENT Rodrigo R. Duterte has moved to reduce the performance-based incentives (PBI) of appointive directors of Government Owned or Controlled Corporations (GOCCs).
In a statement on Thursday, the Governance Commission for GOCCs (GCG) said the Office of the President has “approved” the revised Interim Performance-Based Incentive (PBI) System for the Appointive Directors of GOCCs.
The new incentive system, according to the agency, decreases the maximum PBI amount that GOCCs can receive by 67%.
“For the largest GOCCs (Class A), the maximum PBI has been reduced to P512,000 from the previous maximum amount of P1,536,000. On the other hand, the maximum PBI for the smallest GOCCs (Class E) is now P64,000, compared to the previous P192,000,” the GCG said.
The agency noted that the grant of the incentive was previously suspended following Mr. Duterte’s directive to “study and control the allowances of GOCCs and other government entities for transparent and corrupt-free governance.”
With the new system, an appointive director will receive PBI only if the GOCC has “achieved a weighted-average of at least 90% in its Performance Scorecard for the applicable year” and “complied with the various good governance conditions set by the Inter-Agency Task Force and the GCG.”
Also, the appointive director must have “attended at least 90% 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 Director Performance Review, and not been found guilty of any administrative and/or criminal cases related to his/her work.”
The GCG said funding for the PBI will be “charged to the respective corporate funds of GOCCs, subject to the approval of their respective Governing Boards per applicable laws, rules, and regulations.”
