Directors or trustees of corporations shall not receive compensation for their service unless provided for in the bylaws or approved by a majority of shareholders. Total yearly compensation for directors cannot exceed 10% of the corporation's net income before taxes from the previous year. Directors also cannot participate in deciding their own pay and compensation. Corporations with public interest must report the compensation of each director to shareholders and the Commission annually. Members of the board can receive additional compensation beyond reasonable per diems if they provide other services to the corporation beyond their director duties.
Directors or trustees of corporations shall not receive compensation for their service unless provided for in the bylaws or approved by a majority of shareholders. Total yearly compensation for directors cannot exceed 10% of the corporation's net income before taxes from the previous year. Directors also cannot participate in deciding their own pay and compensation. Corporations with public interest must report the compensation of each director to shareholders and the Commission annually. Members of the board can receive additional compensation beyond reasonable per diems if they provide other services to the corporation beyond their director duties.
Original Description:
Director s Compensation under Corp Code Philippines
Original Title
Director s Compensation under Corp Code Philippines
Directors or trustees of corporations shall not receive compensation for their service unless provided for in the bylaws or approved by a majority of shareholders. Total yearly compensation for directors cannot exceed 10% of the corporation's net income before taxes from the previous year. Directors also cannot participate in deciding their own pay and compensation. Corporations with public interest must report the compensation of each director to shareholders and the Commission annually. Members of the board can receive additional compensation beyond reasonable per diems if they provide other services to the corporation beyond their director duties.
Directors or trustees of corporations shall not receive compensation for their service unless provided for in the bylaws or approved by a majority of shareholders. Total yearly compensation for directors cannot exceed 10% of the corporation's net income before taxes from the previous year. Directors also cannot participate in deciding their own pay and compensation. Corporations with public interest must report the compensation of each director to shareholders and the Commission annually. Members of the board can receive additional compensation beyond reasonable per diems if they provide other services to the corporation beyond their director duties.
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Revised Corporation Code SEC. 29.
Compensation of Directors or Trustees:
In the absence of any provision in the bylaws fixing their compensation, the directors or trustees shall not receive any compensation in their capacity as such, except for reasonable per diems: Provided, however, That the stockholders representing at least a majority of the outstanding capital stock or majority of the members may grant directors or trustees with compensation and approve the amount thereof at a regular or special meeting.
In no case shall the total yearly compensation of directors exceed ten
percent (10%) of the net income before income tax of the corporation during the preceding year.
Directors or trustees shall not participate in the determination of their own
per diems or compensation. Corporations vested with public interest shall submit to their shareholders and the Commission, an annual report of the total compensation of each of their directors or trustees.
Members of the board may receive compensation, in addition to reasonable
per diems, when they render services to the corporation in a capacity other than as directors/trustees. (WIT vs. Salas, 21 August 1997)