INCENTIVE AND HONOR AWARDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000700130009-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: October 24, 2000
• Sequence Number: 9
• Publication Date: March 21, 1956
• Content Type: REPORT

Ex~cuHve Rag.strv
..-.mss
21 MAR 19561
TOs Director of Central Intelligence
THROUGH: Chairman, CIA Career Council
SUBJECT: Incentive and Honor Awards
REFERENCES: (a) Public Law No. 763, Title III, Government Employees
Incentive Awards Act, effective 30 November 1954
1. Civil Service Commission Interpretation (Trans-
mittal sheet No. 477)
(b) CIA Regulation No. 0 Incentive Awards Program
(c) CIA Regulation No. Honor Awards
Recommendations for the approval of the Director of Central Intelligence
are contained in paragraph 6, pages 9 and 10.
1. PROBLEM:
a. What shall be the Agency policy in respect to cash awards for an
accepted improvement suggestion in line of work and otherwise,
sustained superior performance and a single instance of meritorious
conduct?
b. What is the proper administrative mechanism for dealing with these
personal accomplishments?
a. That the Agency deems it good personnel administration to consider
for award or distinction (1) all acceptable employee improvement
suggestions in the fields of economy, efficiency, working conditions,
morale, safety, and security; and separately therefrom, (2) all
instances of sustained superior and meritorious performance and
single instances of exceptional meritorious act or service and valor.
25X1A
b. That the Agency desires to conform to over-ail Federal legislation
on this subject insofar as compatible with its intelligence mission.
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3. FACTS:
a. Previous to 30 November 1954--and for a number of years prior
thereto--incentive award programs existed within the Federal Govern-
ment. There were various laws-with varied unequal,, limited, and
confused application. Cash awards were made for efficiency sugges-
tions and in-grade step-increases were permissible. Under these
laws also honor awards were authorized.
b. For purposes of this survey, the only important legislation in this
field is the new Incentive Awards Act., effective 30 November 195l~,
which has replaced the previously existing authorities. (Public Law
No. 763, Title III.)
(1) The heart of this law lies in the following:
(a) "Section 304. (a) The head of each department is author.
ized to pay cash awards to,, and to incur necessary expenses
for the honorary recognition of, civilian officers and
employees of the Government who by their suggestions, inven-r
tions, superior accomplishments,, or other personal efforts
contribute to the efficiency, economy, or other improvement
of Government operations or who perform special acts or
services in the public interest in connection with or related
to their official employment."
(b) The President has the same authority in addition to (a)
above.
(c) The Civil Service Commission has exercised its authority to
set regulations and instructions for the carrying out of
this program.
(d) A department or Agency head may pay an award up to and
including $51,000. To pay from $5,001,00 up to and including
$25,000, a department must have the Commission's approval
upon certification of the department that the employee's
contribution is "highly exceptional and unusually outstanding."
(e) Termination of the authority to make in-grade step-increases
for incentive awards or meritorious performance.
(f) A departmeent or Agency head may incur expenses for the cre-
ation of non-monetary awards such as medals, etc<
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(2) Of particular importance is the follawing Gail Service inter-
pretation of this legislations
(a} Who is eligible: All civilian employees.
(b} Nature of contribution= outside of or within Sob
responsibilities.
(c) Modification:
1. If wig fob responsibilities, the contribution must
be so superior or meritorious in exceeding normal Sob
requirements as to warrant special consideration.
~. Even if the fob re wires the employee to produce svpe
rior results exc?e~ing norms]. ,fob requirements, the
employee is still eligible if the performance is unique,
or if the contribution can be used outside the immediate
area of responsibility.
(3} The CTA t3eneral Counsel has advised that the Agency "...can Derry
out practically any reasonable policy including restriction of
awards not involving monetary savings to honorary awards but
this should be expressed as policy and the regulation itself not
to b? restrictive or rigid in its application." (See Appendix I)
c. The Ag?ncyts implementation of the Incentive Awards Act is embodied.
25X1A in CIA Regulation No. _ Incentive Awards Program.
j25X1A
(1) This regulation, dated 21 April 1953, ant?-dating th? new law,
authorizes the granting of the following types of award: cash
up to ~1,~00o-for improvement suggestions, in-grade step-increases
(up to three} for effioiency~ in-grade step-increases (one only}
for superior accomplishment and commendation to supplement cash
or in place thereof in event of employee ineligibility.
(~} Agency Notice No.~ dated 13 January 1955, authorizes the
processing and co err ng of incentive awards in accordance with
the new Incentive Awards legislation.
(3) The Incentive Awards Program is administered via the mechanism
of an Incentive Awards Committee and separately, au Incentive
Awards Panel. The latter dews with all incentive award matters
concerning the ~D/i' area and is supervised by the Chairman of
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the Agency Incentive Awards Committee, The summary of actions
taken under the Program since its inception is shown in Appen-
dix II.
M?mbers of these two bodies are appointed by the BCI as followsa
Incentive Awards Committee
Chairmany Chief, Management Staff
Qne member representing the Office of Personnel
n
n
n
n
office of Communi.cationa
u
n
n
u
Office of Training
n
n
+~
n
Office of Logistics
a
a
n
~e
DD~I
n
n
n
n
I~D/P
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Incentive Awards Panel
Cha~.rman, Chief of Adminiatrationy TSS
Two members representing the ~D/P
d. The Agencyts program in respect to Honor Awards formerly. derived its
authority from the various laws referred to in paragraph 3a, but nova
comes within the urview of the sew Incentive Awards Act. C7A Regu-
lation No.~ dated 13 April 1955, autharises awards for acts
requiring a high order of persona]. courage or for singularly important
contributions to the national intelligence effort not introlving the
exercise of persona]. valor.
(1) Agency awards consist of m?dallians known ass
I9isti.nguished Intelligence Cross
nistinguiahed Intelligence Medal
Intelligence Star
Intelligence Meds,1. of Merit
(2) In additions the employee may be eligible for one of two National
awards the National Security Medal and the Medal of Freedom.
bnplogee$ are also eligibles under this program' for awards from
their cav?r organisations. Personnel detailed to CIA are eligi-
ble for awards from their parent organisations.
(a) Summary of the Awards made ender the Honor Awards Program
since its inception is shown in Appendix ITI.
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SIJBJECTa Incentive and Honor Awards
(3) Th? Honor Awards Program is administered by the CIA Honor .wards
Board. Members of th? Board are appointed by the I3CI as followss
One voting member and alternate representing the DD/I
a n rr rr rr rr rr DD/p
N n a rr rr a ~ DD/S
Security Advisor representing the office of Security
Personnel Advisor representing the Office of Personnel
the DCI appoints the Chairman from among the three members.
e< Industrial and business policy under typical suggestion systems, as
evidenced from the compardes listed below, is almost uniformly as
follows:
(la Na superior performance award at all.
(2) The senior executive is not eligible for an award for any improve-
ment suggestion.
(~) The supervisor at whatever echelon is eligible for an improvement
award if the improvement suggested is outside of his immediate
line of work.
(?~) One exception to the above is from a very large retailer who,
via a special fund, pays substantial money on occasion for a
significant and broad contribution in the field of a man's own
work. However, the retail?r is traditionally and particularly
dependent on new id?as all of the time in order to keep his head
above water. This com?s about from the nature of the business,
as well as because of a commonly low prQf~.t level.
(,~) The only other exception in this list is American Telephone &
Telegraph Compar~y, which makes one of three possible Honor Award
medals for heroic service and far noteworthy public service with
accompanying cash. As of August 1955, fin 35 years) the awards
haws been:
15 gold medals with 1,0DO each
139 silver medals with X500 each
1t~02 bronze medals with X100 each (the 1oca1 sore may
award bronze)
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(6) Companies surveyed are as follows:
American Cyanamid Company John Hancock Life Insurance Company
Amerioan Telephone & Telegraph Company Macy's New York-
Ford Motor Company National Biscuit Compan~r
f~eneral Mi1.l.s, Ina. Remington Rand, Inc.
Qeneral Motors Corporation Westinghouse Electric Corporation
Illinois Central Railroad
!~. ~ISCBBSIONt
a. Air substantial contribution could possibly call for one or more of
the forms of award for which provision is made in the two ref?renced
Agency regulations. The term used in ~ a "singularly important 25X1A
oontribution to the national intelligence effort..." is broad enough
to fa11 under the ~urisdietion of either the Incentive Awards Commute?,
the Incentive Awards Panel or the Honor Awards Board - or all of them.
To that ?nd the day-ta-day administration is now collaborative. HoweF?r,
the first two named groups hav+? the cash but no medal and the Honor
Awards Board has the medal but no cash. It is to be noted that the Honor
Awards Program is designed to reaognitie outstanding contributions to any
mission or activity conducted by CIA. Promotion, as an award is of
course outside of the jurisdiction of either the Incentive Awards Com-
mittee or the Honor Awards Board. In-grade step-increases under these
programs are no longer permissible.
(1) It is further to be noted that the Agency unit primarily respon-
sible for surveys as to efficiency is given a most significant
morals r?sponsibility.
(a) Recent transfer of the Chairmanship of the Incentive Awards
Committee fra~m the ~?irector of Personnel to -the Chief,
Management Staff was predicated on the volume nature of the
items arising under the Program, i.e., almost entirely
improvement suggestions. Reconsideration is now properly
in order.
b. A contribution of ar~q outside-of-th?-employee's particular fob r?spon-
sibilities is clearly something different from within-his-fob responsi-
biliti?s. In the latter ease, particularly the farther up the scale
of salary compensation one goes, the more significant is the question
of cash award. When considering within-fob respons3bilitiss~ appropri-
ateness of the different kinds of award ~ or no award - oan well be a
morale question depending on a number of factors. Importantly these
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factors area nature of the aontribution~ grade of the individual?
his ages his position, his fob responsibilities, degree of supervision
+~ccord?d' length of service in the Agency, his i~mediate car?er staff
status and his fitness reports.
c. The Civil Service Comr~issionts interpretation of the federal law
makes the DCT eligible for a cash awardl This leeway suggests that
this Agency aan construct its own policy.
d. Of the four Honor Awards w.i.thin sur awn control, only one is within
reach of the great body of Agency employees in the field of meritori-
ous service or act.. This is the Intelligence Medal of Merit,~-
faurth one 1 ste below.
(1)
c~)
(3)
~~)
Distinguished Intelligence Cross -for heroism.
Distinguished Intelligence Medal -for outstanding services of
distinctively exceptional nature as to constitut? a "ma or eo tri>
bution" to the mi.ssivn~ of CIA.
Intelligence Star -for heroism.
Intelligence Medal of Merit - e. .for meritorious service or
act above normal duties requiring initiative and extra
effort which have contributed to the accomplishment of the missions
of CIA.
Tt is suggested that there is room additionally for a lower 1?ve1 award
in the field of meritorious service to permit recognition of superior
performance that is not sufficiently significant to qualify far the
Intelligence Medal of Merit. Thereby it would be possible to reach a
larger number of employ+aes.
e. 4iewing the whole body of employees it can generally be held that at
the CiS-11 level there be ns the true executive group and the senior
executive potential or resource. Correspondingly, below this level,
and increasingly downward, there ead.sts the great body of individuals
whose advancement to executive level may be long delayed or never
achieved. here ev?n a modest form of award - a merit certificate >
and especially cash - is of greater significance and of a different
appropriateness value.
f. Inherently contained in meritorious award recognition of a senior
grade employee (increasingly from CnS-11) is the award to a supervisor
who reflects the performance of the people who support ham.
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g. One-time sash awards may we17. be entirely appropriate in the field
of improvement suggestions dealing with efficiency, conditions of
work and security, etc., and quite the opposite for meritorious
conduct. tTith an improvem?nt suggestion, most frequently, one can
obtain an actual dollar saving; even when the benefit is intangible,
a sav3.ng can often be seen.
h. Depending on the nature and value of the contribution, a promotion,
a commendation or a m?dal might be applied to any situation with the
medal reserved for the most significant.
cl) A cash award for sustained superior or meritorious performance
or for a single meritorious act or service, especially in the
high?r grades, waters down the attitv~.e which is so important to
promote in the Ag?ncy; namely, sense of mission, fob-pride and
dedication. To a degree, such pricing also vitiates "fob-pride"
and that kind of performance which comes only from the internal
personal satisfaction of doing well and better than the other
fellow.
This point is perhaps sharply made within the questions: "What are
we being paid for in base salary?'r "Is the intangible factor of
mission, loyalty, devotion, and integrity properly compensable outside
of position w3.th its accompanying emoltanents~"
(2) Of interest is a eaven man "gallop poll" on cash versus U.S.
medals. See appendix IV)
~'. CONCL LIONS s
a. That feature of the present Incentive Awards Program involving sus-
tained meritorious performance or a single meritorious act on the one
hand, and the Honor Awards Program on the other are all within the
same basic context. They should be dealt with together in policy and
in administration.
b. Tn the field of meritorious performance, a cash award within the upp?r
grades is inappropriate in this Agency.
c. In the field of improvement suggestions, a cash award within the upper
grades is equally inappropriate but because of the sharp psychological
differences in these two kinds of contributions greater flexibility
may be used in case of improvement suggestions.
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d. The Agency needs another award to recognize frequently occurring
superior performance.
e, The commendation letter presently used in connection with Suggestion
awards should. be continued as appropriate.
6. RECOI~EI~fATIONS:
It is recommendeds
a, That, in accordance with Public Law No. 763, the Agency create an
Incentive Awards Program under the general jurisdiction of the Deputy
Director (Support) composed of
(1} An honor awards element under the supervision of the Director
of Personnel dealing with meritorious performance and valor; and
(2 ). A suggestion awards element under the supervision of the- Chief
Management Staff dealing with improvement suggestions, i.a,,
efficiency, morale, safety, security, etc.
25X1A b. That Regulations Nas< a combined into one regula-
tion embodying the above concept.
o. That there be created a fifth award, for meritorious performance, to
consist of a Certificate of Merit accompanied by a flat unvarying
emolument of ~Z00.00.
d. That the administration of the two elements of the Program be con-
tinued as at present by an Honor Awards Board and a Bugg?stion Awards
Committee.
e. That ths~ Honor Awards Board be informally directed that no cash award
shall b? made to any employee in grades (35-11 and above for sustained
superior meritorious performance or far a single meritorious act or
service and that the Certificate of Merit be awarded only to employees
in grades CS-lp and below.
f. That the Suggestion Awards Committee be informally directed that no
cash awards shall be given for improvement suggestions to employees
in grades QS-15 and above, except upon approval by the DCI on a most
exceptional basis.
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g. That no member of the Suggestion Awards Staff, the Records Manage-
ment Staff, or the Organization and Methods Staff sha11 be eligible
for an award for an improvement suggestion,
Task Force for Inc?ntiv? Awards:
Chairman, Incentive Awards Committee
Chairman, .Honor Awards Board
Deputy rector of Personnel
for Planning and development
Appendixes:
I. Memo to C/~+1gmt Staff from
General Counsel dtd 21 Feb ,~6
nIncentiva Awards" (with
attachment)
II. Statistical Summary of Incentive
Awards
III. Statistical 3umznary of Honor
Awards
IV. Memo to Messrs. and
from Chairman/HQB dtd
Z7 Feb ~6 "~a$h vs Medalstt
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FOIAb3b
SUB~TECTs Incentive and Honor Awards
~~NF1DE~1fiI~.E
The CIA,. Career Covnc3.}. has reviewed this Staff Study and concurs in the
reccurareendations
yman tt. ~.rkpa~.c
Acting Chairman, CIA Career Covnci].
Date ~ ,a 2 ~~"G
pp G l
The recommendations in paragraph 6 are approveds
' Director of ~ntra-~-l-intelligence
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