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Washington, D.C. -- The U.S. Office of Personnel Management has issued a report on compensation and performance in fiscal year 2006 for senior executives, the upper-most cadre of federal professionals.
The report, Senior Executive Pay for Performance for Fiscal Year 2006, reflects results of the Administration's efforts to pay outstanding members of the Senior Executive Service (SES) and give Americans a better return on their tax dollars.
In making agencies accountable for executive compensation and linking pay to performance, President George W. Bush is institutionalizing the way executives are evaluated, paid and rewarded. At the same time, improved compensation systems promote a results-oriented business strategy as called for in the President's Management Agenda.
"Agencies continue to show improvement in using their appraisal systems to make distinctions in performance and to make appropriate pay and awards determinations based on individual and organizational performance," said OPM Director Linda M. Springer. "Agencies also continue to improve their pay-for-performance systems, using their systems to link executive performance with organizational goals and focus on achieving organizational results."
The report reflects information agencies provided on 7,137 career and non-career SES. A review of the data confirms agencies are taking to heart responsibility for making meaningful distinctions in executives' performance. For instance, SES members rated at the highest level in fiscal year 2006 was up two-tenths of 1 percent at 44.7 percent over the previous fiscal year; however, the fy06 figure is still significantly lower than the 61.6 percent of executives who received the top rating in fy04.
Other data in the report shows a less than 1 percent increase in the number of executives receiving a performance award in fy06 over fy05; however, the average award in fy06 dropped by $522.
To read the report, go to www.opm.gov/ses/2006_SES_Annual_Report.pdf.
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