INCREASES IN THE SENIOR INTELLIGENCE SERVICE (SIS) STIPENDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89G00643R000600090010-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 27, 2016
• Document Release Date: December 13, 2011
• Sequence Number: 10
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2011/12/13: CIA-RDP89GO0643R000600090010-1
MEMORANDUM FOR: Acting Director of Central Intelligence
Executive Director
Deputy Director for Administration
General Counsel
Comptroller
F4 : Hugh E. Pr is e
Director of Personnel
OP? -('1VYY
SUBJECT: Increases in the Senior Intelligence Service (SIS) Stipends
1. Action Requested: That the recommendations in paragraph 6 be approved.
2. Background: Since the inception of the Senior Executive Service (SES)
program in 1979 and the conferring of the first awards in 1980, the dollar
amounts for the Distinguished Officer Stipend (DOS) and the Meritorious
Officer Stipend (MOS) awards have been fixed by law at $20,000 and $10,000
respectively. Despite rising salary levels over the past eight years, the DOS
and MDS award amounts have not been changed to reflect these increases.
3. The minimum performance award allowed by law is 5 percent of salary
and the maximum is 20 percent. The performance award percentages adopted by
most agencies, including the CIA, have been 5 percent, 10 percent, 15 percent
and 20 percent. Because salaries have risen and the stipend award amounts
have not, persons selected to receive 20 percent performance awards receive a
higher cash award than those who receive an MOS, and those who receive a 15
percent performance award are more than likely also to receive more than
$10,000. This situation often places managers in the curious position of
having to choose between recommending a higher cash award that carries with it
less prestige or a more prestigious award of less monetary value. The
following charts illustrate this point.
STAT
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ADMINISTRATIVE - INTERNAL USE ONLY
SUBJECT: Increases in the Senior Intelligence Service (SIS) Stipends
Past and Present 15% and 20%
Performance Award Amounts
FY 1980 FY 1987
15% 20% 15% 20%
Minimum SES Salary $50,112 $7517 $10,072 $64,700 $9705 $12,990
Maximum SES Salary $52,750 $7912 $10,550 $77,500 $11,625 $15,500
Stipends as Percentages of Salaries
FY 1980 FY 1987
$10,000 $20,000 10,000 $20,000
Minimum SES Salary $50,112 20% 39.9% $64,700 15.5% 30.9%
Maximum SES Salary $52,750 19% 37.9% $77,500 12.9% 25.8%
4. Members of Congress, members of the SES and the Office of Personnel
Management (OPM) are well aware of the disparity between the original intent
of the SES law which established the stipend amounts and the current salary
levels. The SES Advisory Board has recommended to OPM that the MOS award
amount be increased to $16,000 and the DOS to $29,000. Representative
Pat Schroder introduced legislation on 1 July 1987 to make a number of
modifications to the SES system and one of the changes she proposes is to
provide for increases in the stipend amounts to reflect salary increases.
However, passage of Representative Schroder's bill is considered unlikely this
year since it also contains a provision for reducing the number of SES
political appointee positions.
5. The Agency is exempt from the provisions of the SES law but we have
modeled our Senior Intelligence Service after it very closely and have chosen
as a matter of policy to follow the provisions of the SES legislation. It is
within the authority of the Agency to modify the dollar amounts of the
stipends it confers if it so chooses. If the Agency increases the M06 stipend
to $16,000, a figure $500 higher than the maximum possible 20 percent
performance award; and if the DOS stipend is increased proportionately to
$29,000, a figure that closely approximates what it would be if an adjustment
mechanism had been built into the SES law, the extra dollar cost for the
FY 1987 M06 & DOS awards would be approximately $303,000 (the total amount for
the FY 1987 stipend awards would go from $540,000 to $843,000; while the
awards are made in recognition of FY 1987 performances and accomplishments,
the award amounts are actually paid in FY 1988).
6. Recommendations: In light of the above facts, the following two
recommendations are offered for your consideration.
a. It is recommended that the dollar amounts of the MOS and the DOS
be increased to $16,000 and $29,000 respectively effective with the
FY 1987 awards.
approved ( ) disapproved ( )
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/12/13: CIA-RDP89G00643R000600090010-1
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/13: CIA-RDP89GO0643R000600090010-1
SUBJECT: Increases in the Senior Intelligence (SIS) Stipends
b. It is recommended that in the future the stipend awards amounts be
increased automatically by the same percentage as SIS salaries are
increased, the dollar increase to be rounded up to the nearest hundred
dollars.
approved ( ) disapproved ( )
STAT
Hugh E. Price
STAT
General Counsel
/S C)04 P E7
STAT
Date
STAT
Deputy Director for Administ
*Believe it prudent to leave the Distinguished
Officer Stipend as is (it is still at $20K, 29%
larger than the biggest 20% award) but allow the
Meritorious Awards to be supplemented by enough
additional funds so that they are $500 greater than
the largest 20% award...i.e., let it rise to STAT
$16,000. Congress should be informed in advance.
**The Office of Congressionai Attairs will be asked to advise the
oversight committees of this change in the SIS awards system.
APPROVED:
As an adjustment to partially offset the effects of increases in SIS
salaries since 1979, an increase in the amount of the Meritorious
Officer Stipend from $10,000 to $12 500 is approved. This increase is
effective beginning with the FY 1983 Awards. **
utive Di for
Acting Director of Central Intelligence
STAT
ST
T;
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/13 :CIA-RDP89G00643R000600090010-1
20 October 1987
NMRANDUM FOR: Director of Personnel
FROM: Deputy Director of Central Intelligence
SUBJECT: SIS Awards Stipends
1. This is to advise you that I have authorized an increase in the
dollar amount of the Meritorious Officer Stipend from $10,000 to $12,500.
This change is to be effective with the awarding of the FY1987 awards. The
increase is being made in order to partially offset the cumulative effects of
SIS salary increases since 1979.
2. The Office of Congressional Affairs will be asked to advise the
i
overs
ght committees of this change in the SIS awards system.
Robert M. a es
ADM1NISPRATIVE - INTERNAL USE ONLY
STAT
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 STAT
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Declassified in Part - Sanitized Copy Approved for Release 2011/12/13: CIA-RDP89GO0643R000600090010-1
 Declassified in Part - Sanitized Copy Approved for Release 2011/12/13: CIA-RDP89GO0643R000600090010-1
SUBJECT: Increases in the Senior Intelligence (SIS) Stipends
b. It is recomended that in the future the stipend awards amounts be
increased automatically by the same percentage as SIS salaries are
increased, the dollar increase to be rounded up to the nearest hundred
dollars.
approved ( ) disapproved ( )
STAT
Hugh E. Price
STAT
General Counsel
(L Jt.;'1J.+~t
Date
STAT
MM ~ k 7
ro e
Deputy Director for Administration
Date
1( r-4 I4~7
Date
STAT
*Believe it prudent to leave the Distinguished
Officer Stipend as is (it is still at $20K, 29%
fi larger than the biggest 20% award) but allow the STAT
Meritorious Awards to be supplemented by enough
additional funds so that they are $500 greater thanf~
the largest 20% award...i.e., let it rise to
$16,000. Congress should be informed in advance.
Acting Director of Central Intelligence
STAT
STAT
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 STAT
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STAT
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