EXECUTIVE PAY BILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100680031-7
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: November 17, 2016
• Document Release Date: July 22, 2000
• Sequence Number: 31
• Publication Date: June 30, 1955
• Content Type: MFR

1. On 30 June 1955, following Mr. Pforsheimer's conversation with
a representative of the Bureau of the Budget, I attempted to call Mr.
Philip Young, Chairman of the Civil Service Commission, as well as Mr.
John W. Macy, Jr., the Executive Director. Being unable to reach them I
was referred to Mr. Ismar Baruch, Technical Advisor to the Commission,
who has been working with Mr. Toung on the Executive Pay Bill and who ap-
peared to be completely knowledgeable. He advised me that last week tit.
Young had discussed this matter with the white House and the subcabinet
group on which the Bureau of the Budget has been represented by its As-
sistant Director, it. Belcher. As of the 20th of June, immediately af-
ter the 7.5 per cent pay raise was signed, it was tentatively decided
that this would, be a. good time to push forward on an amendment to the
Executive Pay Act. it. Baruch is now working on a memorandum which Mr.
Young is to use in another subcabinet meeting scheduled for Wednesday,
6 Jaly.
2. The Civil Service CorTmdssion,has been working with "selected"
agencies in revising the Executive Pay Act. it. Baruch understands that
the Administration is not going to press for this legislation during
this session of Congress. However, if consultations between the "dmin-
istration and, the leadership in Congress indicate that a Bill can be put
through without too much trouble it will go forward almost immediately.
As of now, and Mr. Bauch emphasizee that it is still very tentative, it
merely provides for an amendment to the prevent Executive Pay Pct, with
almost no positions added to the list already included, and, roughly, a
33-1/3 per cent increase. The Director and Deputy Director are now in-
"cluded in the zt~cocutivs Pay Act and under the new formula their sr.?iaries
would be paid at approximately 621,300 and $18,000 respectively. TV
'18,000 figure for the ieputy Director was set because, according to the
Civil Service Commission's thinking at the moment, this will eventually
be the new ceiling; for trade at which the :+eputy Arector posi-
tion is now peggot.
3. In further discussion, Mr. Baruch told me that under the new
formula the Deputy Secretary of Defense would get 26,700 and the Under
 Secretaries $23,300; Cabinet members are to go to $30,000. He told me
quite confidentially that he felt we would run into very strong opposi-
tion if we attempted to have a number of other CIA positions included
in the Executive Pay act and suggested that our best bet might be to
Propose our own separate legislation and seek a package something like
the Atomic Inergy Commission now has. I told him that we were reluctant
to propose our own separate legislation but did feel strongly that the
Director should receive the same salary as the Deputy 'ecretary of De-
fense and the i)eputy uiroctor the same salary as the Under Secretaries,
with several of our other senior people receiving salaries on a level
with Assistant Secretaries. (This is to be 420,000.) fir. Baruch said
that he certainly was in sympathy with this but knew that it. Young;
felt very strongly that if they opened the door at all to allow new po-
sitions to come in the whole matter would become so complicated that it
would lose all chance of early passage.
4. I reported this conversation to Messrs. Pforahelmer anti Kirk-
patrick, after which Mr. Kirkpatrick asked Mr. Pforaheimer to prepare
separate legislation for the Director's consideration.
0: DCI
cc: Insp tor General
i.Zt gislative Counsel
:xireotor of Personnel
Comptroller
L. K. 1UT
Jeputy +irector
(3upport)