ACTION MEMORANDUM # 436

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000200040004-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: June 17, 2002
• Sequence Number: 4
• Publication Date: January 23, 1965
• Content Type: MEMO

or Release 2002/08/21 : CIA-RDP80B01676 00200040004 4
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Peputy Dir
rAlpixtr Liec
TO Deputy Lirector
LI...pay Director P.uppo
Inspector Casaeral
General Counsel
(CLASSEFICATION)
OFFICE OF THE DIRECTOR
SUBJECT
1146 Bogert Development*
REFERENCE:
1. The ear 1b6
revie*ad by the 1147/4146,4ol
basatm approved the Aseacy
ddition to the usual limitations ao tote
authority and ort totst aumbor of
plioo two mew restrittiona:
A.436
Action Memorandum No.
JAN 1965
v
Date
tf the Ageacy Is.L5 to
ter adjustment*, the President
6616tittiOil to Out CP0AiiitC66.
levol for atm obli&ationai
reau hes this year
a. AmzLni allowable iher of positions
throu.th *AA 11 opecilic Atm tiee t:1 the 0Yerall tA41
supergrade sad scientific payschede erripioyee* autharigea.
b. A set level, which etwoOt
ary paid o aa Attacy..voitis besis.
4 for the avereyie
Z. both of these new lizeitatione have beee .stltsieo
ernment. The first otter testrietteg the Tther of rade* le
and **that the catilas, oa sulertrades, has noel:a ilit6;111
the press, is easily twitterstotni. itud poses (*a- great probieli,
1A. The eeelseid Slaw costrol factor, the average salary stipulation,
more c plea ar.d requires oath elaboration aad action. ... the pa plait*
of this -nem Tandem.
3. 04v
ditterf.l.
CievereAlont
ously the change in graUtte
to stop escalation in the sire and is the doflar colas of
agetticiec Thee. meattoras have aeon taken agsiut tmckki.
SUSPENSE DATE:
SEChET
' CRO;12 1
1
=' Enctutd tatr, ter.r.nht,
11,;:fr7r-tr?In7, z,-...1 .
LI,-?.1.7.111r,'1'41
(CLASSIFICATION)
Approved For Release 2002/08/21 : CIA-RDP801301676R000200040004-4
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4Z>Pzic)4t1'14
or Relete 2002/08/21 : CIA-RDP80B01676 02000400044
7
of two recezit pay raises for Federal employees and the abundantly clear
policies of this Adminietration with respect to inc axed productivity and
economy in GOVCrarritszti operations. 1Lach agency is charged with keeping
within the limits established and with Lasing steps now to assure that
controls are developed to meet these objectives.
4. The Bureau of the Budget contends that, even alter allowances
have been made for pay raises and the ueual periodic step increases, the
Agency average salary over the past year has shown a sharp rise. The
Bureau feels that our promotion rat* may be unduly high, that there has
been too great a margin between position grade and the actual grade of the
incumbent, and that grade structure within organizational components may
be richer than actual responsibilities justify. The Bureau has also suggested
that Agency retirement rates, under both the new legislation and coasting
Civil Service arrangements, should start to accelerate, with a concomitant
lowering of average salary needs.
S. Based on the foregoing coasieratioas the Bureau of the Budget
has assigned an Agency average salary for FY 1966 which is exceedingly
austere. A careful examieation of Agency experience in this area is bein
made in preparation for further negotiations with the Bureau, but even if
some relief is obtained from the assigned figure, the problem t)f adhering
to a set average salary is a substantial task for Agency management.
6. There are mitigating factors. believed to be unique to CIA, wttich
have contribeteci to the trend toward higher average salaries. Firet is
the legitimate and anticipated result of the Agency's deliberate policy of
recruiting below the grade of the position and then promoting to the grade.
La other words, people brought aboard in the lower grades are now growing
into their full responsibilities and this is being recLgnized by promotion.
This policy of k...0Dizig substantially below grade differs from the practice
elsewhere in Government. 6econd, the Agency skills mix has also chnn4 -
materially over the past year with many lower grade personnel droppeu
from Tables of Organization and their numbers reduced through attritiela
(one of the manifestations of an organization coming down in over-ail
personnel strength). Finally, new positions at higher grade levels have
been created to accommodate an increasing requirement LI the scientific
and technical fields.
Approved For Release 2002/08/21 : CIA-RDP80601676R000200040004-4
or Rele
e 2002/08/21,: CIA-RDP OB01676R200040004-4
li
A
ogMs.a that they
when IT 11164
Is the interim.
WNW level
funds a
the Agencies Gas?
sad will Ise defeated ea
O. Admittedly.
4.ice. responding to
to artificial rigging.
meat must propose te Mee*
Ml *cope at personnel
through recruitment* pay* prookatioa sad separation.
The Office of Suelytt. Presren; Am/pas wed
of Per Seeleel are cressently developing proposals which
monetary sad perseamel centrals While inalataintag the isles i
Career Service ceocept. The results et these itiVorte will be dises;*
fertheensiag meeting; at the Tiaaacial Policy aad Nudge& Committee.
10. Three steps are immediately obvious. nil& SS a temporary
there will be no opsradiusat peaitions until an appropriate nmeetary sad
control system liar imter approved. Some. promotions *cameo most be bald to
those which you In are absolutely essential. Third. all Directorates mutat
isstitute ark surest*** program to initiate retirement if these personae:1 olio
qualify under the law at this time. This is vital bit provide essential headroom
and Aesdbility In porseamil moassement throughout the Agency. Tlyis Offke
of Perseenel will provide Emelt Directorate with the same* of peremmel under
their jerisetictioa who dotal* for retirement over the mart 10 mouths. &Mat
Directorate will import to me by Maw* I 1946 she actions taken to effect
retirement of thee* persoaset.
ea be wiry fluid coutrol
glvse time and susceptible
e. Agency manage
-
task Involves the
positios greding
(signed) ?77.
Lyman B. dirhpatricx
25X1 LeAecutive Directer.Compireller
BPAM
Distribution:
Orig DD/P
1 - Each addressee
1 - Executive Director-Comptroller
1 - Executive Registry
1 - D/BPAM
flm (14 January 1965)
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Approved For Release 2002/08/21 : CIA-RDP80B176R000200040004-4