I. PURPOSE

The EPIRA demands a high level of competence and market-driven performance. It is therefore necessary to upgrade the Salary Scale of General Managers (GMs) of Electric Cooperatives (ECs) in order to provide them with a competitive package for their services, comparable with the prevailing compensation level in the industry.

II. POLICY

It shall be the policy of this Office to establish a Salary Scale for General Managers of Electric Cooperatives that is attractive to competent and achievement-directed professionals, Electric Cooperatives that is attractive to competent and achievement-directed professionals be responsive as well to present economic conditions, and to maintain a roster of adequately compensated, highly-motivated and performance-oriented General Managers.

III. SALARY UPGRADING

The point system indicated below shall be used for purposes of upgrading the salaries of General Managers who have been permanent for at least two (2) years; but may be considered for salary upgrading in situations where a GM exceeded/surpassed targets.

PARAMETERS	POINTS
SYSTEM & CUSTOMER EFFICIENCY STANDARDS SYSTEM LOSS
As approved by ERC	15
POWER FACTOR (at least 85%)	5
HOUSE CONNECTIONS
81% and above of potential	10
61%-80 of potential	8
41%-60% of potential	6
21%-40% of potential	4
20% and below of potential	2
BARANGAY ENERGIZATION
Above 10 barangays	10
8-9 barangays	8
6-7	6
4-5	4
3 and below	2
CUSTOMER PER EMPLOYEE
1:350 and above	10
1:300 and above	4
1:250 and below	3
Below 1:200	0
FINANCIAL OBLIGATIONS
NEAAMORTIZATION PAYMENT
Current	15
Overdue	0
Restructured-Current	10
Bonus point for advance payment (1 point for every quarter or 1M whichever is higher not to exceed 5 points)
TRANSCO
Current	5
Overdue	0
GENCO
Current	5
Overdue	0
FINANCIAL STANDARDS
LIQUIDITY(CurrentRatio)(1:1)	5
EFFICIENCY RATIO/AVERAGE COLLECTION PERIOD
30 days & below	5
31-35 days	4
35 - 40 days	3
41-45 days	2
More than 45 days	1
COMPLIANCETO AUDIT FINDINGS	5
TOTAL POINTS	100

The above are the criteria-based evaluation. An executive narrative assessment shall done by the Institutional Development Department considering the inputs from the various line departments which are dealing with the EC GMs. Any milestone or benchmarking performance or any issue or concern shall be disclosed to guide the Deputy Administra- tor/s and Administrator in rendering their decision. Relationship with stakeholders should be likewise assessed to help GMs in their most effective response to leadership and management situations.

IV. STEP INCREMENTS

A. OUTSTANDING PERFORMANCE

In addition to these criteria, a GM who maintains his coop's A+ category for a number of consecutive years is entitled to step increases reckoned from the base salary of the rank corresponding to the total number of points garnered, as provided below:

NO. OF CONSECUTIVE YEARS	STEP INCREASE
3	1
4 to 6	2
7 to 10	3
11 to 13	4
14 and above	5

B. PROFESSIONAL UPGRADING

1. A GM who finishes the Chief Executive Officer Competency-Based Leadership Program Self-Development Course is entitled to a rank increment.
   
   
2. A GM who has earned a masteral/post graduate degree is entitled to a rank increment

V. MECHANICS OF IMPLEMENTATION

1. The Board shall review the performance of the GM on an annual basis. Based on good performance, the Board may grant a salary increase to the GM manifested through a Board Resolution. The increase will be guided by the point-system prescribed under these guidelines.
   
   
2. The upgrading of the GM's salary shall be suspended/deferred in any of the following cases:
   
   
   1. if the coop posted a cumulative net loss on its past six (6) consecutive month of operations at the end of the month proceeding the evaluation;
      
      
   2. if the coop's performance based on the Key Performance Indicators showed marked downtrend from the previous year's figures; and
      
      
   3. if there is pending case with the NEA and/or there are major adverse findings in the final audit report.
   
   
3. Automatic performance evaluation/review of GM who has not received any s adjustment for the last two (2) years with at least a very satisfactory performance shall be done by the NEA, and results shall be forwarded through a letter to the Board of the Directors for appropriate action.
   
   
4. The Board may approve a GM's salary upgrading beyond these guidelines i consideration of innovations that enhance operational efficiency, or of special projects that generate savings or additional revenue for the cooperative.
   
   
5. If after the evaluation, the resulting points and salary step increments result to the maximum salary grade and steps, salary upgrading shall be based on the additional increment between steps.
   
   
6. Any adjustment in the General Manager's salary shall be explicitly approved by the NEAAdministratorto officialize and confirm the same.

Attached^* are the new Salary Scales according to the classification of the ECs. VI. AMENDATORY CLAUSE

This supersedes the Memorandum on the Revised Salary Scale for General Managers dated 11 September 2003.

VII. EFFECTIVITY

These guideline shall take effect fifteen (15) days upon submission of copies to the University of the Philippines Law Center, as required by Executive Order No. 292.

Adopted: 12 May 2008

(SGD.) EDITA S. BUENO
Administrator

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.