Executive Compensation

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Our Executive Compensation Plan covers all non-political officers, executives, and senior professionals.

Bands

You will be assigned to one of three below to reflect your rank and role. Each band is eligible for different aspects of compensation.

• Band 1: Positions with broad responsibility for short and long term external service development and delivery. Includes Assistant and Associate Administrators and heads of designated major organizations.
• Band 2: Positions with shorter term or more narrowly defined responsibility. Includes most executive positions.
• Band 3: Senior Professional positions.

Base Salary

Each band’s base salary falls in a set range. Your base salary is negotiated within that range. Base salary ranges are updated annually, consistent with marketplace changes.

Band	CY 2010 Base Salary Range
1	$127,900 - $173,700
2	$121,300 - $170,600
3	$114,600 - $168,500

The salary ranges shown do not include locality pay. Federal locality pay is computed separately as a percent of salary and is added to your base salary. Base salary plus locality pay can't exceed the current legislative cap of $179,700.

• Annual Adjustments - You can expect an annual base salary increase if you meet all the expectations of your position for the year. You are eligible for a larger base salary increase if your performance has been significantly above your peers -- a Superior Contribution Increase (SCI). The SCI varies by individual but provides high performers with a superior recognition of your contributions when combined with the annual adjustment.

Short-Term Incentives

Short-Term Incentives (STI) are rewards for leading the achievement of annual, predetermined agency and line of business goals and outcomes.

All executives and senior professionals are put on a Short-Term Incentive plan. The target incentives vary, depending on the position.

• The Process - Each fiscal year, the Administrator and the FAA Management Board establish agency level objectives with success criteria or expected outcomes drawn from the FAA Strategic Plan. Lines of Business also establish expected outcomes based on commitments made in the FAA Strategic Plan and business plans.
  
  Executives and senior professionals are solely accountable for some objectives and share responsibility for others. At the end of the year, outcomes for each objective are measured. A formula is applied to determine the amount of the lump sum cash incentive payment to be made reflecting the degree of successful achievement of objectives.

Other Plan Provisions

Also part of the Executive Compensation Plan:

• The Performance Management and Recognition System (PMRS) allows for cash awards of up to $10,000 per year for executives and senior professionals to recognize unplanned but highly significant, major contributions.
• Salary offset policies for those receiving dual compensation (e.g., reemployed annuitants) continue.
• Executives who have had to move to another location within 5 years of retirement may be eligible for "last move home" benefits under FAA Travel Policy regulations.