The government is considering capping the amount of compensation package being received by officials and regular personnel of state-run firms, said Socioeconomic Planning Secretary Ernesto Pernia on Tuesday.
Pernia said such limit on salaries, bonuses and honorariums in government-owned and controlled corporations (GOCC) would be part of the reforms in the GOCC sector, which is expected to be discussed during the Legislative Executive Development Advisory Council (LEDAC) meeting on Jan. 30.
"GOCCs are treated like private sector so they have to be competitive. But bonuses I think should also be tempered," he told reporters.
Pernia, also the National Economic and Development Authority (NEDA) Director-General, believes that salaries and compensation in GOCCs should be based on performance.
He cited some officials of GOCCs receiving as much as Php5 million a year, including compensation.
"GOCCs have become rather unwieldy. They are paid monthly honoraria and they meet twice a month. I understand that an honorarium per meeting is Php40,000 so of course there is an incentive for board members to have more frequent meetings so twice a month. I think they should meet only once every quarter, that is the normal frequency of board meetings. And their honoraria should be tempered and also bonuses. In fact, they should not be given bonuses ," he added.
Pernia further said President Rodrigo Duterte is set to announce major reforms in the GOCC sector.
Source: Philippines News Agency