EDITORIAL - Moderate the perks

MANILA, Philippines - Compensation in government must be competitive with those in the private sector to attract good talent. This is so particularly for senior managers, whose competence and leadership could mean the difference between good governance and the breakdown of basic services. There are those who are willing to make personal sacrifices and give up high salaries in the private sector to work in government. But many people give primary consideration to the financial needs of their families and turn down invitations to serve as public officials.

Executives in government-owned and controlled corporations and government financial institutions with their own charters are lucky in that they are exempted from pay ceilings in the bureaucracy and can therefore receive higher salaries and benefits. Privileges, however, are prone to abuse. If preliminary findings of the new administration are accurate, certain GOCC and GFI officials enjoyed unreasonably high compensation. Yesterday, Sen. Franklin Drilon said one GOCC executive received P10 million in bonuses alone last year. That is an amount low-ranking police officers and public school teachers cannot hope to earn for all their years of government service.

The president of the republic gets a gross pay of less than P100,000 a month. Why should an executive of a state-run firm earn so much more for a job that is so much easier than running a country? But never mind the nation’s highest official, who has numerous perks to compensate for his low basic pay. Why should a teacher who works three shifts a day, or a soldier who constantly puts life and limb on the line in defense of the republic, get a tiny fraction of what a board director in a state-run firm gets for simply sitting through a boring meeting once or twice a month?

Clearly, there is a need to rationalize the salaries and perks of executives of state-run firms, at the same time that the government is regularly reviewing pay scales in the bureaucracy. Officials appointed by the new administration can set an example and take it upon themselves to limit their own rewards. There is such a thing as overcompensation. GOCC executives must learn to moderate their perks.