Congress Turns Up the Heat on Executive Bonuses

Four years ago, Congress changed the rules for pay and bonuses in the SES in hopes of creating a model for introducing a performance-based pay system into the government. In exchange for the chance to obtain higher pay and bigger bonuses, the SES members gave up a guarantee of annual pay raises.

This month, Dorgan, joined by Sens. Daniel K. Akaka (D-Hawaii) and George V. Voinovich (R-Ohio), wrote the GAO saying that they need more information on how the SES system is working, how bonus decisions are made, and how they are linked to agency goals and performance standards. The GAO has agreed to undertake the probe, a Dorgan aide said last week.

It's possible that the executive bonuses are not being used as intended and have been turned into regular salary supplements at some agencies, given congressional curbs on federal pay.

Light said Congress should reexamine the adequacy of federal executive compensation, while agencies should be cautious in how they use bonuses.

"If you are using the bonus as a back-door pay increase, you are going to get caught sooner or later," Light said. "And Congress will get involved and start freezing bonuses, and it will get worse."

This is not the first time that federal bonuses have drawn the ire of Congress or public attention, especially when there are perceptions that an agency is not delivering efficient or effective programs.

"They are probably the lowest-paid executives in their class, so to speak, but somehow when you work for the government it becomes more obvious how much more you are paid than the average American," said Bill Coleman, senior vice president for compensation at Salary.com, a research and software company.

Stephen Barr's e-mail address isbarrs@washpost.com.