A new executive order will be issued next week to put a cap on the pay packages of officials and board members of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs), President Aquino said on Friday.

Aquino said the new EO being drafted by the Department of Budget and Management (DBM) will "tighten up" the Memorandum Order No. 20 in 2001 issued by then President Gloria Macapagal Arroyo.

"There is already an existing law — it was an EO series of 2001 that was not implemented. I am awaiting a draft coming from the DBM on how to tighten up that existing EO precisely to prevent excessive pay benefit packages that some of the GOCCs have been basking in for a long time," Aquino said in a press briefing at the Convergys Corp. contact center in San Lazaro, Manila.

Aquino was apparently referring to Memorandum Order. 20 which directed GOCCs and GFIs to stop any salary adjustment, put a cap on salaries and benefits, and provide a system of incentives that can only be given based on the performance of GOCC officials and employees.

The intent of the directive, which was not implemented, is “to reduce the actual pay package to a level not exceeding two times the standardized rates for comparable national government positions.”

“Any increase in salary or compensation of GOCCs/GFIs that are not in accordance with the SSL shall be subject to the approval of the President,” Memorandum Order No. 20 states.

Aquino said he expects resistance with the new EO especially those who have been getting fat paychecks.

"Of course, there is some resistance from those who have gotten all of these fat pays. But we will insist that their positions due the government and the benefits are also due government from people. So hopefully by next week that will become part of the law of the land," he said.

Aquino said the DBM has been reviewing the GOCCs' various pays and bonuses.