Agencies would submit to the CSC on or about February 1 their requests for: The CSC, after collaboration with OMB, would authorize a maximum number of executives, a career/noncareer ratio and an average salary ceiling for each agency. The ratio of noncareer could not exceed 25 percent of the authorized FES total Except as specifically authorized, the average salary for an individual agency could not exceed the government-wide figure. The CSC would report its authorizations to Congress on April 1. The authorizations would become effective in 90 days, unless Congress acted to the contrary. Agencies could appoint (hire) executives from inside or outside of Government up to the numbers authorized and in accordance with the career/noncareer ratio. - Agencies would not have to justify appointment of individual executives based on centrally approved position classifications--instead, agencies would develop tailored position management systems. Individual executives could be paid salaries anywhere within the salary range for the Federal Executive Service--but the agency would have to stay within its authorized average salary ceiling. Agencies would have complete authority to hire and remove noncareer executives. Agencies would appoint career executives according to the following procedures: Following an intensive search based on merit principles, the agency would make a selection subject to approval by the CSC. • Agencies would be encouraged to establish and utilize internal boards for Candidates from both inside and outside Government could be selected. - Within the CSC, selections would be presented to the appropriate qualifications board for approval prior to formal appointment by the agency head. There would be 15-20 qualifications boards, based on occupations. As agents of the CSC, each board would operate government-wide for the occupations within its cognizance, and be composed of recognized leaders in the Government, academic and private sectors. The boards would review the agency's selectee in terms of: How the agency identified likely candidates; • The appropriateness of his qualifications compared to the qualifications needed to carry out the agency's programs (and the qualifications on which recruiting was based); and His professional qualifications and stature in the occupation. Qualifications boards would not review assignments following appointment, or renewal appointments. Agencies would have maximum flexibility in the assignment of executives. Career and noncareer executives could be assigned to duties interchangeably--positions or duties would not be designated as career or noncareer. All executives could be assigned wherever needed, regardless of the nature of the duties, or their organizational or geographic location, provided the duties were of executive calibre, and assignments were not made arbitrarily or capriciously. There would be a procedure whereby executives could appeal if they felt these latter provisions were not met. Career appointments would be made on the basis of 3 year, renewable employment agreements, which would obligate the agency: Not to reduce the executive's salary for the three-year period (although increases would be allowed at the agency's discretion). Not to separate the executive except for cause, or to demote him from executive status by reduction-in-force or assignment if inappropriate duties. (The executive would agree to serve wherever needed, as described above and could When the agreement expired, the agency would have the option of offering the executive a renewal--for 3 years. The number of renewals would be limited only by the executive's reaching the mandatory retirement age. Each agency would administer the renewal process in the matter most appropriate to to its needs. A formal review would not be mandatory; renewals could be handled informally. Agencies would be encouraged to set up advisory boards to advise and assist the agency head as to the renewal of individual employment agreements. If the agency chose not to offer a renewal, or if such an offer were made and declined by the executive, the agency may involuntarily separate the executive from the service if he has completed 30 years of service and is otherwise eligible for an annuity. In all other cases, the agency would have to offer the executive a continuing GS-15 position in the career service (without displacing any other employees). He would then be paid for two years at the rate of his last FES salary, before reverting to the appropriate rate of the GS-15 schedule. Executives who chose not to continue employment as an executive or as a GS-15 and are not separated by the agency under the "30 years of service" provision, could elect optional or discontinued service retirement, if eligible, or separation with severance pay. PAY STRUCTURE The proposed Federal Executive Service will be a single uniform system covering Federal executives, now in grades GS-16, -17, and -18, and persons in positions not in the General Schedule but paid (currently) in the same salary range. In the Federal Executive Service plan, it is proposed that the grade levels (currently GS-16, -17, and -18) be abolished and a range of compensation be established. This pay range for the Federal Executive Service will extend from the comparability rate for the highest skill level in the Administrative, Professional, and Technological Evaluation System--as the minimum rate of the pay range for the Federal Executive Service--to the salary established for the Assistant Secretary Level in the Executive Schedule--as the maximum rate of the pay range for the Federal Executive Service. The pay range will not consist of step increments. Thus, as indicated above, only minimum and maximum rates will be established. Under the Federal Executive Service compensation system, agencies will have flexibility in determining pay in accordance with contribution. Control over a general escalation of pay will be achieved by establishing the minimum and maximum rates (as indicated above) and by requiring adherence to an overall average. The average salary of all executives in any agency cannot exceed the executive average which will be set by the Civil Service Commission after collaboration with the Office of Management and Budget. 29 developed by Job Evaluation and Pay Review Task Force A. Introduction This paper presents a plan for the evaluation of executive positions in the Federal service. This category embraces positions immediately below the five levels of the Executive Schedule. Most of these positions are filled by career executives who provide continuity to the management of Federal programs. A study of the various categories of Federal executives was conducted by the Task Force. The following numbers of top executive positions were found: The evaluation plan described in this paper ranks positions on each of four factors, hence is referred to as Factor ranking. It is designed to provide an equitable, logical relationship among Federal executive positions. These relationships can serve as a basis for pay and other management determinations. B. Coverage C. The system described below applies to top level positions in the Executive Branch of the Federal Government. Incumbents of these positions play a highly significant role in the management of the Executive Branch of the Federal Government. They are responsible for planning, directing, and executing major programs throughout the departments and agencies of the U. S. Government. Incumbents of these positions often recommend, develop, or approve policies to govern their program areas. The Federal executive is concerned with defining program objectives, staffing an organization, coordinating the efforts of organizational components, and evaluating the performance of subordinates who manage the various units under his control. He is normally held accountable for the attainment of program objectives. Excluded from this evaluation system are high level individual workers, such as special assistants and assistants to top executives. Solo contributors, since they are not executives by the above definition, have to be "tucked into" the ranking of agency jobs based on "whole job evaluations" in relation to those ranked by factor. Relationship to Federal Executive Service The President has submitted proposed legislation to establish a Federal Executive Service (FES), embracing approximately 7,000 employees now in grades GS-16-18. That system covers the appointment, compensation and other personnel functions applicable to Federal executives. The proposed Executive Evaluation System (EES) can optionally be utilized by agencies in carrying out their obligations under the Federal Executive 1/ Certain positions involved in scientific research and development requiring the services of specially qualified persons. 2/ Primarily in TVA, AEC, and Department of Medicine and Surgery in Veterans Administration D. Service with respect to position management. EES could assist in the ranking of positions for determining which positions should be included under FES, and for payranking purposes. Methodology The Task Force has developed a tailor-made job evaluation system for executive positions. This project was accomplished with the assistance of Cresap, McCormick and Paget, Inc., Management Consultants. 1. Selection of Sample. The system was designed around an initial sample of 635 positions in 29 Federal agencies. These positions are presently classified in grades GS-16-18, or at equivalent levels under other pay systems. By eliminating duplicate positions and positions for which current data were not readily available, the sample was reduced to a final figure of 368 positions. The 29 sample agencies covered 11 cabinet departments, the large independent agencies, a variety of boards, committees and commissions, small independent agencies, as well as certain legislative agencies, i.e., General Accounting Office and Library of Congress. 2. 3. Selection of Factors. A factor ranking system with points was developed for a. b. c. d. Job Requirements. This factor measures the range of information or under- Difficulty of Work. This factor measures the nature of work in terms of the Responsibility. This factor measures the significance of the work in terms Each of the above factors has been chosen to measure a different and significant aspect of the positions with a minimum of overlap, yet each is applicable in varying degree to all of the positions. The factors, as a group, embody all the important characteristics of the position as a whole and identify its total scope and nature. Factor Ranking. The actual evaluation method, known as Factor Ranking, is |