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WHEREAS,  the Integrated Reorganization Plan (IRP) authorizes the Career Executive Service (CES) Governing Board to promulgate rules, standards and procedures  on  the  selection,  classification,  compensation  and  career development of members of the CES;

WHEREAS, the IRP further provides that “[m]embers of the CES shall be compensated according to rank and shall be provided with attractive salaries, fringe benefits and reasonable allowances”;

WHEREAS,   pursuant   to   these   mandates,   the   CES      Governing  Board promulgated CESB Resolution No. 807, entitled, “The Consolidated Rules on Compensation in the Career Executive Service (CES)” on 10 July 2009;

WHEREAS, Item D of CESB Resolution No. 807 provides for the compensation of Career Executive Service Officers (CESOs) appointed to CES positions;

WHEREAS, Item E of the same resolution provides for the grant of one-step increments upon original or promotional appointment to CES rank of CESOs;

WHEREAS, Item E of CESB Resolution No. 807 has been amended by CESB Resolution No. 894, dated 14 September 2010, which provides for the grant of step increments beyond the eighth step to harmonize the CESB’s rules on compensation with the compensation systems of Government-Owned and Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs) that provide for more than eight step increments in the salaries for positions in GOCCs and GFIs;

WHEREAS, Republic Act No. 10149 or the “GOCC Governance Act of 2011” has vested upon the Governance Commission for GOCCs (GCG) the authority to conduct compensation studies and develop a Compensation and Position Classification System which shall apply to officers and employees of GOCCs;

WHEREAS, CESB Resolution No. 945, series of 2011, clarified the coverage of the CES by limiting the same to positions requiring Presidential appointments in consonance with the ruling of the Supreme Court in the case of Civil Service Commission vs. Court of Appeals and Philippine Charity Sweepstakes Office (G.R. Nos. 185766 an 185767, 23 November 2010);

WHEREAS, consequently, executive/managerial positions that are not subject to the appointing authority of the President of the Republic of the Philippines are considered as beyond the coverage of the CES;

WHEREAS, CESB Resolution No. 1355, series of 2017 further classified as non- CES positions, the Chief Executive Officer or the highest ranking officer of GOCCs, GFIs, Government Instrumentalities with Corporate Powers (GICPs), Government Corporate Entities (GCEs), Including the subsidiaries thereof;

WHEREAS, upon review of the aforementioned provisions, the CES Governing Board has determined that the same need to be revised for further clarity and to ensure that the rules on compensation are reflective of current developments;

WHEREFORE,  the  abovementioned  premises  considered,  the  Board RESOLVES, as it is hereby RESOLVED, to amend item D of CESB Resolution No. 807 as follows:

“D. Compensation in the CES

1. x x x

2. A CESO appointed to a CES position with a salary grade higher than that of his rank  shall be entitled to a higher salary grade attached to the CES position.

3. A CESO appointed to a CES position with a salary grade lower than that of his rank  shall continue to be entitled to the salary grade attached to his rank.

4. x x x”

The Board RESOLVES, as it is further RESOLVED, to amend Item E of CESB Resolution No. 807, as follows:

“E. One-Step Salary Adjustment

1. Upon original appointment to CES rank, a CESO shall be entitled to a one-step salary adjustment in the salary grade attached to his or her rank.

2. Upon appointment or promotion to a CES position that has a salary grade higher than the CESO’s current CES rank, such CESO shall be entitled to a one-step salary adjustment in the salary grade attached to his or her position. However, if the salary grade attached to his or her CES rank is higher than that of his or her new position, the one-step salary adjustment shall be based on his or her CES rank.

3.   Upon adjustment in CES rank, such that the same would be commensurate to the CES position to which the CESO has been appointed, the CESO shall be entitled to a one-step salary adjustment in the salary grade attached to his or her rank.

4.   Upon promotion in CES rank without the concomitent promotion in CES position, the CESO shall be entitled to a one-step salary adjustment based on the salary grade attached to his or her new rank.

5.  Where the salary of a CESO is already at the eighth step of the salary grade of his rank or CES position, the one-step entitlement shall no longer apply.”

This resolution shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general circulation.

APPROVED this 31st day of May 2018 in Quezon City, Philippines.