The Bangko Sentral ng Pilipinas (BSP) executives once again dominated the list of highest-paid government officials in 2024, according to the Commission on Audit’s (COA) latest Report on Salaries and Allowances (ROSA). Leading the pack is BSP Governor Eli Remolona Jr., who earned a total of ₱47.97 million, marking a significant increase from his ₱35.48 million earnings in 2023.
The top 10 highest-paid government officials were all from the BSP, with Deputy Governor Chuchi Fonacier earning ₱30.39 million and Deputy Governor Francisco Dakila Jr. receiving ₱28.82 million.
Why Are BSP Executives Paid So Much?
1. Autonomy and Critical Role
The BSP operates independently from other government agencies, a structure designed to insulate it from political pressures. Its primary responsibilities include maintaining monetary and price stability, supervising banks and financial institutions, managing foreign reserves, and issuing currency. These functions are vital to the country’s economic health, necessitating top-tier talent and justifying competitive compensation.
2. Exemption from Salary Standardization Law
Under the New Central Bank Act (RA 11211), the BSP is exempt from the Salary Standardization Law, allowing it to offer salaries that are competitive with the private sector and international standards. This exemption enables the BSP to attract and retain highly skilled professionals in economics, finance, and risk management.
3. Global Benchmarking
It’s common practice for central banks worldwide to offer substantial compensation to their executives. This approach helps prevent corruption, discourages movement to higher-paying private firms, and upholds the independence and integrity of monetary policy.
4. High-Stakes Responsibilities
BSP executives are tasked with making decisions that have far-reaching implications for the country’s economy. Errors in monetary policy or financial regulation can lead to economic instability. The high compensation reflects the pressure, long hours, and potential legal risks associated with their roles.
5. Performance-Based Culture
The BSP employs performance-based evaluations, with compensation tied to measurable outcomes such as inflation control, economic stability, and effective financial system supervision.
Breakdown of Governor Remolona’s 2024 Compensation
- Basic Salary: ₱12 million
- Bonuses, Incentives, and Benefits: ₱18.76 million
- Allowances: ₱14.94 million
- Discretionary and Miscellaneous Expenses: ₱2.24 million
Additionally, Governor Remolona served on the governing boards of 10 other government financial institutions and corporations, including the Philippine Deposit Insurance Corp (PDIC) and the Anti-Money Laundering Council (AMLC), without receiving additional compensation for these roles.
PH Final Thoughts
While the high salaries of BSP executives may raise questions, they are aligned with the critical nature of their responsibilities and the need to maintain economic stability. Competitive compensation ensures that the BSP can attract and retain the expertise required to navigate complex financial landscapes and safeguard the country’s economic interests.
What are your thoughts on the compensation of BSP executives? Share your opinions in the comments below.
