First Look at Senior Executive Service Performance Awards

The Senior Executive Service (SES) went into effect on July 13, l979, with a system of performance awards intended to encourage excellence in performance and higher productivity among Federal executives. The first bonuses under this system were paid in May and April of l980 by the Small Business Administration (SBA), the National Aeronautics and Space Administration (NASA), and the Merit Systems Protection Board (MSPB). Concerned about the number and amounts paid by the first two agencies and about potential abuse of the system, Congress passed legislation to, through the appropriations process, limit payment of SES awards to no more than 25 percent of the number of SES positions in any agency. Awards made by the National Capital Planning Commission were withdrawn at the request of the Office of Personnel Management (0PM) in order to comply with this congressional action. Congress directed GAO, in cooperation with OPM, to study the SES award payments to identify potential abuses of the system.