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B-199649 1 (1981-11-10)

handle is hein.gao/gaobacsqi0001 and id is 1 raw text is: I L &LAW i AmL. LUtAd~l .L~L~...atZA S A . * . ~' . COMPTfOLLER GENERAL OF THE UNITED 57 ATES * ~~WASH1INGTON D.C. 1344 2'~ )t B-199649 - - ti 10 91 The Honorable Ted Stevens Chairman, Subcommittee on Civil Service, Post Office, and General Services Committ'ee on Governmental Affairs United States Senate Dear Mr. Chairmans Th\s letter in in response to your request that we evaluate your proposal to raise the pay cap for Federal caroer executives by 14.7 percent to 57,500. Your proposal also would raise the pay limitations for Executive Level III and IV positions to $59,500 and ?58,500, respectively. Salary levels for Members of Congress9 Cabinet officials, and equivalent positions in the ex- ecutive, legislative, and judicial branches would not be changed. While your proposal to raise but not lift entirely the pay restrictions for career executives and certain other Federal ex- ecutives, excluding Hember8 of Congress, would not )ully alleviate the critical pay compression problem, it would provide a much- needed measure of relief. Moreover, if it encourages affected ex- ecutives to delay their retirements for 3 years, the savings would * offset virtually all of the additional salary costs involved, * The proposed raise would relieve some of the existing pay compression among career executives and senior manage; s, provide . needed pay increases to most Federal executives, and preserve the small but important pay distinctions among the various execu- tive levels. Raising the pay limitations and allowing a portion of t~he scheduled pay increases to become effective ahould have a positive effect on the Senior Executive Service (SES); the re- cruitment, retention,' and morale of Federal executives and senior managersy and, ultimately, the management and operation of Govern- ment programs. In our opi;idon, the executive pay dilemma is one of the most critical but perhaps least understood and appreciated problems facing the Government today. Since March 1977, the executive pay ceiling has been increased by only 5.5 percent. During that same period, retired Federal executives received Annuity cost-of- living adjustments totaling 55 percent; Federal white-collar pay rates have been increased by 38 percent; and private sector ex- ecutive pay has gone up about 40 parcent. 0

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