BIZ BUZZ: How much is too much? Recto on Maharlika execs’ salary
Amid the controversy surrounding the salary demands of the Maharlika Investment Corp. (MIC) officials, Finance Secretary Ralph Recto, who also sits as the MIC chair, doesn’t sound too convinced that the salary structure at the startup sovereign wealth fund should, at the onset, be as much as currently proposed. While he agrees that MIC should offer a competitive package to attract the best talent, Recto said, “Siguro, we don’t start very high.”
Instead, he wants the compensation package for the highly technical positions at the country’s first sovereign wealth fund to be “performance-based,” which means that certain conditions or milestones must be met first.
“So maybe it should be more on the performance bonus, right? To be result-oriented. We suggested that,” Recto told Biz Buzz.
To benchmark its proposal, the MIC board has looked at the salary structure of top officials at the Bangko Sentral ng Pilipinas (BSP) and other government financial institutions.
Reports said that MIC president Rafael Consing had asked for a basic monthly pay of P2.5 million. If it pushes through, this salary won’t be too far from what the BSP Governor earns and may even top what Monetary Board members get.
BSP Governor Eli Remolona Jr.’s annual salary stood at P35.48 million last year, thus averaging P2.96 million a month.
Article continues after this advertisementRecto said with the performance-based salary structure, it’s still possible for MIC officials to earn what is being proposed.
Article continues after this advertisementConsing earlier said that the board is still studying and discussing the remuneration package for employees. Recto said that he is willing to listen to the MIC board.
Finance Undersecretary Maria Luwalhati Dorotan Tioseco also told Biz Buzz that there’s already a list of “very able” potential candidates who will fill the available positions at MIC. However, she stressed that they have to identify first who among them areonsidered as “highly technical”.
“So, we’re still there trying to figure out the positions that should be highly technical for you to be able to be paid more than the average civil servant,” she said.
According to the MIC’s charter, positions within the corporation are divided into two categories: highly technical positions, which are exempt from the standard compensation and position classification system, and non-technical positions, which will adhere to the regular system. — Mariedel Irish U. Catilogo
“Hotline” to new trade czar
Newly appointed Acting Trade Secretary Cristina Aldeguer-Roque announced the launch of a “secretary hotline,” promising local business leaders of a hands-on approach to solve their problems.
Roque revealed the Department of Trade and Industry secretary hotline, [email protected], during Go “Negosyo’s Women in Collaboration for Micro, Small and Medium Enterprises (MSME) Development” event at the Manila Polo Club on Monday.
“This will allow everyone to send their concerns, inquiries and complaints directly to my office where we would address these more promptly and thoroughly,” Roque told the audience composed mostly of the country’s top female business executives.
The acting trade secretary also expressed her commitment to implement a five-point plan in developing local MSMEs, highlighting the importance of the sector that comprises 99 percent of businesses and employs around 60 percent of the country’s workforce.
“If we push or drive the MSMEs, then we also drive the economy,” she said.
Roque is the founder of clothing brand Kamiseta, which she started in 1988 with just P6,000, which would partly explain her affinity and fondness for the MSME sector. – Alden M. Monzon
