MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 65
PRESCRIBING RULES TO GOVERN THE COMPENSATION OF MEMBERS OF THE BOARD OF DIRECTORS OF LOCAL WATER DISTRICTS PURSUANT TO SECTION 5 OF EXECUTIVE ORDER NO. 24 (s. 2011)
WHEREAS, on 10 February 2011, the President issued Executive Order (EO) No. 24 entitled “Prescribing Rules to Govern the Compensation of Members of the Board of Directors/Trustees in Government-Owned or Controlled Corporations Including Government Financial Institutions”;
WHEREAS, in the exercise of the power of control of the President over Government-Owned or Controlled Corporations (GOCCs), EO No. 24 was issued to rationalize the compensation of the members of their Board of Directors;
WHEREAS, the Supreme Court, in the case of Davao City Water District et. al. vs. Civil Service Commission and Commission on Audit, G.R. No. 95237-38, dated September 30, 1991, declared Local Water Districts (LWDs) as “GOCCs with original charter”, they being quasi-public corporations created pursuant to Presidential Decree No. 198 (The Provincial Water Utilities Act of 1973), as amended, and whose employees...
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Executive Orders
Prescribing Rules To Govern The Compensation Of Members Of The Board Of Directors Of Local Water Districts Pursuant To Section 5 Of Executive Order No. 24 (S. 2011)
Executive Order No. 65
Summary of Executive Order No. 65
Prescribing Rules to Govern the Compensation of Members of the Board of Directors of Local Water Districts
- Coverage (Section 1):
• The rules apply to all duly formed and existing Local Water Districts (LWDs).
• Terms used have the same meaning as in Executive Order No. 24, unless otherwise defined.
- LWD Classification (Section 2):
• LWDs are classified into four categories (A, B, C, or D) based on the number of active service connections and equivalent point rating, whichever is lower, as provided in the Revised LWD Manual on Categorization, Recategorization and Other Related Matters (LWD-MaCRO).
- Compensation Structure (Section 3):
• Compensation is in the form of per diems, subject to limits in Sections 4 and 5.
• Performance-Based incentives may be allowed, based on performance criteria in Section 9.
• Annual Retainer Fees and Stock Plans are not allowed.
• Salaries, Allowances, Benefits, and other Bonuses are not allowed unless specifically authorized by law or Charter and approved by the President, and the total compensation and per diems shall not exceed the limits in Sections 4 and 5.
- Per Diem for Board Meetings (Section 4):
• The maximum per diem per Regular or Special Board meeting attended by members of the Board of Directors is based on the LWD category, but shall not exceed the specified maximum annual amount.
• The Board Chairperson may receive up to 20% more than the members.
• The maximum per diem and annual limits are specified for each LWD category.
- Computation of Per Diem (Section 5):
• The LWD classification and equivalent point rating system determine the per diem amount.
• The per diem range for each LWD category is specified.
• LWDs may receive a higher per diem if they meet the Assets and Revenue criteria in Executive Order No. 24.
- Succeeding Adjustments of Per Diem (Section 6):
• The per diem may be adjusted through a Board Resolution, subject to LWUA guidelines and within the specified limits.
• Any increase in the per diem limit requires endorsement by LWUA and GCG, and approval by the President.
- Committees (Section 7):
• Working committees are allowed only for LWDs under Category A.
• The maximum per diem and annual limits for committee meetings are specified.
- LWUA Review (Section 8):
• LWUA shall conduct a review of the actual per diems granted to the members of the Board of Directors of LWDs within three months from the implementation of the adjusted per diems.
- Performance-Based Incentives (Section 9):
• Members of the Board of Directors may be entitled to Performance-Based Incentives not exceeding 50% of the actual annual per diem received for Regular and Special Board meetings, subject to performance criteria developed by LWUA, endorsed by GCG, and approved by the President.
- Reimbursable Expenses (Section 10):
• Necessary expenses of the members of the Board of Directors shall be paid directly by the LWD.
• Reimbursement claims shall comply with Section 12 of Executive Order No. 24 and shall not exceed 25% of the actual per diems received for Regular and Special Board meetings.
• Travel expense reimbursement shall follow the guidelines in Executive Orders No. 248, 248-A, and 298.
- Categorization of LWDs by LWUA (Section 11):
• LWUA shall categorize the LWDs based on the LWD-MaCRO within three months from the effectivity of this Order and submit the complete list of categorized LWDs to the DBM.
- Clarification (Section 12):
• Any request for clarification on the provisions of this Order shall be in writing and directed to the LWUA.
- Separation Clause (Section 13):
• If any provision of this Order is declared invalid or unconstitutional, the other unaffected provisions shall remain valid and subsisting.
- Repealing Clause (Section 14):
• All other rules, regulations, and issuances or parts thereof which are inconsistent with this Order are hereby repealed or modified accordingly.
- Effectivity Clause (Section 15):
• This Order shall take effect immediately upon publication in a newspaper of general circulation.
Prescribing Rules to Govern the Compensation of Members of the Board of Directors of Local Water Districts
- Coverage (Section 1):
• The rules apply to all duly formed and existing Local Water Districts (LWDs).
• Terms used have the same meaning as in Executive Order No. 24, unless otherwise defined.
- LWD Classification (Section 2):
• LWDs are classified into four categories (A, B, C, or D) based on the number of active service connections and equivalent point rating, whichever is lower, as provided in the Revised LWD Manual on Categorization, Recategorization and Other Related Matters (LWD-MaCRO).
- Compensation Structure (Section 3):
• Compensation is in the form of per diems, subject to limits in Sections 4 and 5.
• Performance-Based incentives may be allowed, based on performance criteria in Section 9.
• Annual Retainer Fees and Stock Plans are not allowed.
• Salaries, Allowances, Benefits, and other Bonuses are not allowed unless specifically authorized by law or Charter and approved by the President, and the total compensation and per diems shall not exceed the limits in Sections 4 and 5.
- Per Diem for Board Meetings (Section 4):
• The maximum per diem per Regular or Special Board meeting attended by members of the Board of Directors is based on the LWD category, but shall not exceed the specified maximum annual amount.
• The Board Chairperson may receive up to 20% more than the members.
• The maximum per diem and annual limits are specified for each LWD category.
- Computation of Per Diem (Section 5):
• The LWD classification and equivalent point rating system determine the per diem amount.
• The per diem range for each LWD category is specified.
• LWDs may receive a higher per diem if they meet the Assets and Revenue criteria in Executive Order No. 24.
- Succeeding Adjustments of Per Diem (Section 6):
• The per diem may be adjusted through a Board Resolution, subject to LWUA guidelines and within the specified limits.
• Any increase in the per diem limit requires endorsement by LWUA and GCG, and approval by the President.
- Committees (Section 7):
• Working committees are allowed only for LWDs under Category A.
• The maximum per diem and annual limits for committee meetings are specified.
- LWUA Review (Section 8):
• LWUA shall conduct a review of the actual per diems granted to the members of the Board of Directors of LWDs within three months from the implementation of the adjusted per diems.
- Performance-Based Incentives (Section 9):
• Members of the Board of Directors may be entitled to Performance-Based Incentives not exceeding 50% of the actual annual per diem received for Regular and Special Board meetings, subject to performance criteria developed by LWUA, endorsed by GCG, and approved by the President.
- Reimbursable Expenses (Section 10):
• Necessary expenses of the members of the Board of Directors shall be paid directly by the LWD.
• Reimbursement claims shall comply with Section 12 of Executive Order No. 24 and shall not exceed 25% of the actual per diems received for Regular and Special Board meetings.
• Travel expense reimbursement shall follow the guidelines in Executive Orders No. 248, 248-A, and 298.
- Categorization of LWDs by LWUA (Section 11):
• LWUA shall categorize the LWDs based on the LWD-MaCRO within three months from the effectivity of this Order and submit the complete list of categorized LWDs to the DBM.
- Clarification (Section 12):
• Any request for clarification on the provisions of this Order shall be in writing and directed to the LWUA.
- Separation Clause (Section 13):
• If any provision of this Order is declared invalid or unconstitutional, the other unaffected provisions shall remain valid and subsisting.
- Repealing Clause (Section 14):
• All other rules, regulations, and issuances or parts thereof which are inconsistent with this Order are hereby repealed or modified accordingly.
- Effectivity Clause (Section 15):
• This Order shall take effect immediately upon publication in a newspaper of general circulation.