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Report on California Statutory Salaries of Executive Branch of California State Government
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COMMISSION ON CALIFORNIA STATE GOVERNMENT ORGANIZATION AND ECONOMY
Chairman
D. W. HOLMES
Madera
Vice-Chairman
MANNING J. POST
North Hollywood
HARRY BLACKMAN
Beverly Hills
HOWARD A. BUSBY
San Diego
JACK R. FENTON
Assemblyman, Montebello
HAROLD FURST
Sa n Fro nci seQ
H. HERBERT JACKSON
Sacramento
JAMES E. KENNEY
Pasadena
STANLEY E. McCAFFREY
Berkeley
MILTON MARKS
Senator, San Francisco
PATRICK D. McGEE
Assemblyman, Van Nuys
GEORGE MI LLER, JR.
Senator, Contra Costa County
NATHAN SHAPELL
Beverly Hills
L. H. HALCOMB, JR.
Executive Officer
Report on
California Statutory Salaries
of Executive Branch
of California State Government
By
The Commission on California State
Governnlent Organization and Economy
December 1968
RONALD REAGAN, Governor
COMMISSION ON CALIFORNIA STATE GOVERNMENT ORGANIZATION AND ECONOMY
11th &. L Building, Suite 550
Sacramento 95814
Chairman
December 11, 1968
D. W. HOLMES
Madera The Honorable Ronald Reagan
Vice·Chairman
Governor of California
MANNING J. POST
North Hollywood
The Honorable President pro Tempore,
HARRY BLACKMAN
Beverly Hills and Members of the Senate
HOWARD A. BUSBY
San Diego The Honorable Speaker,
JACK R. fENTON and Members of the Assembly
Assemblyman, Montebello
HAROLD fURST Gentlemen:
San Francisco
H. HERBERT JACKSON
Sacramento This Commission has completed its study of executive compensation in the
JAMES E. KENNEY California state service. This study was requested by Governor Reagan in his
Pasadeno
letter of April 9, 1968, to Mr. D. W. Holmes, the Chairman of the Commission
STANLEY E. McCAFfREY
Berkeley on California State Government Organization and Economy. In addition, the
MILTON MARKS State Legislature through Assembly Concurrent Resolution 105 requested the
Senator ~ San Francisco Commission to review and evaluate the executive compensation system in State
PATRICK D. McGEE
Assemblyman, Van Nuys Government.
GEORGE MILLER, JR. In approaching the task of reviewing and evaluating the State's system of
Senator, Contra Casto County executive compensation, the Commission first accepted the general precepts of
NATHAN SHAPELL
Beverly Hill. good salary administration on which to base its evaluation and recommendations.
H. L. HALCOMB, JR. These precepts include: (1) The salaries paid to State executives should be
Executive 01l'1C9' commensurate with their duties and responsibilities; (2) State executives should
be compensated fairly in relation to one another; (3) salaries paid to State
executives should be competitive and should enhance the recruitment and reten
tion of high caliber executives; and (4:) the differential in salaries paid to execu
tives of varying levels of responsibility should be substantial enough to reflect
those differences in responsibility.
The Commission concludes that: (1) Compensation for executive positions
in the State of California has evolved in such a way as to have eluded proper
relationships; (2) the creation of new positions has not been coupled with com
pensation consistent with existing positions; (3) the levels of statutory salaries
have resulted in extreme compaction of the senior management salary struc
ture; (4:) there are too many executive statutory salary levels in the Executive
Branch; and (5) there is no established procedure for timely periodic review
of executive salaries. The accompanying report presents our findings, conclusions
and recommendations in detail. '
The study was conducted under the supervision of a Commission subcommittee
consisting of Messrs. James E. Kenney, Chairman; Howard A. Busby; and
Harold Furst. The Commission's Executive Officer, L. H. Halcomb, Jr., provided
coordination for the project. The staff of the State Personnel Board and the
Department of Finance ably assisted the Commission with this study.
We believe the findings of the Commission are sound and the recommendations
justified and, in some instances, long overdue. A basic building block of proper
administration of the California State Government is a reasonable compensa
tion plan for positions of responsibility.
Respectfully submitted,
D. W. HOLMES, Chairman
MANNING J. POST, Vice-Chairman
HARRY BUCKMAN
HOWARD A. BUSBY
ASSEMBLYMAN JACK R. FENTON ...
HAROLD FURST
H. HERBERT JACKSON
JAMES E. KENNEY
STANLEY E. MCCAFFREY
SENATOR MILTON MARKS ...
ASSEMBLYMAN PATRICK D. MCGEE'"
SENATOR GEORGE MILLER, JR. ...
NATHAN SHAPELL
• Absent during CommiSSion deliberation.
3
REPORT ON CALIFORNIA STATUTORY SALARIES OF
EXECUTIVE BRANCH OF THE CALIFORNIA
STATE GOVERNMENT
TABLE OF CONTENTS
pa.ge
1. Introduction ______________________________________________________ 7
2. Scope and 1fethod _________________________________________________ 7
3. Findings and Conclusions___________________________________________ 8
4. Recommendations _________________________________________________ 10
APPENDIX
I. Tables _________________________________________________________ 15
II. Compensation Study Requests _____________________________________ 21
III. References ______________________________________________________ 23
5
INTRODUCTION
A system of equitable executive compensation in tions in state government be equitable, both in
the State of California should be of importance to all relation to one another and in relation to similar
the citizens of the state. The government of California positions in other governmental jurisdictions.
is headed by a relatively small number of executives. The proposals contained herein present approaches
The process of selecting, training, and evaluating the to meeting these goals and objectives.
employees and officers of the state is inhibited if they
are not adequately compensated for their efforts. It
SCOPE AND METHOD
is the problem of executive compensation established
1. Scope
by statute to which this Commission has directed its
attention. The purview of this study was limited to execu
tive positions in the California State Government
Three objectives or goals were formulated to guide
executive branch whose salary rates are set by
the commission in this study:
statute. This group includes 54 full-time ad
1. Alleviate Compaction of Salaries ministrators, 42 full-time board and Commission
In most state departments, the salary of the di Members, 21 part-time board and Commission
rector in effect establishes an upper limit for Members, and 293 board and Commission Mem
salaries of other employees in that department, bers who are paid a daily rate for each official
including both exempt and civil service person meeting attended.
nel. .As salaries for exempt and civil service po Exempt positions whose salaries are not estab
sitions have increased over the years, the salaries lished by statute, such as deputy directors, were
of statutory directors have increased at a much excluded from the scope of this study since
slower pace. This has caused the salary differen salaries for such exempt positions are established
tial between the director and his subordinates administratively. The salaries for civil service
to dwindle. In many instances, the difference in executives are set by the State Personnel Board
salary between a director and his chief deputy and, similarly, were excluded from this study.
director is one dollar per month. In addition, a number of exempt positions whose
salaries are set by statute are not included in
2. Establish Compensation to Attract and Retain
speci:fic salary recommendations. Some of these
High-Caliber Personnel for State Executive
positions function within the hierarchy of an
Positions.
organization in a manner similar to other exempt
The efficient and responsible operation of the administrative positions whose salaries are not
executive branch of the California State Govern set by statute. The scope of responsibility of
ment requires the employment of the most quali others did not appear to equate to the lowest
:fied personnel available. To continue to attract statutory salary level proposed. A speci:fic rec
and retain high-caliber personnel the state must ommendation concerning both types of these
offer reasonably competitive salaries. In the Com positions is included in the recommendation por
mission's report of 1965, A Study of Manage tion of this report.
ment Manpower Requirements-California State
Government, the Commission cited under the 2. Method
heading "Motivating Managers to Excel" the The resources utilized by the Commission in this
following: study were varied and extensive. Salary admin
"In the state government as in most organiza istration plans from other governmental jurisdic
tions, compensation levels continue to be the tions were studied and evaluated including
focal point of all incentive devices. The Com those of the Federal Government, the State of
mission's :findings indicate, however, that the New York, and the County of Los Angeles.
highest salaries offered by the State of Cali Salary data from a variety of recent executive
fornia to managerial echelons are signi:ficantly salary surveys were also reviewed. Numerous
low in relation to those offered by private types of data relating to state salaries were de
industry for analogous positions. They also veloped; the history of state executive salaries
compare unfavorably with the salaries paid by was reviewed and previous studies of statutory
the State of New York, the Federal Govern salaries in the State of California were ana
ment, and even some municipal governments." lyzed. Charts and tables on salary compaction
were also reviewed and analyzed. Program state
3. Remedy Salary Inequities
ments were obtained for each department to help
Salary inequities exist when the salaries paid evaluate the scope of responsibilities inherent in
to the various executives are lower or higher those positions. A complete listing of the refer
than the salaries paid to other executives with ences utilized by the Commission in this study
comparable responsibilities. It is the view of is available in the appendix. Program state
this Commission that salaries of executive posi- ments are available in a separate volume.
7
Upon these and other data enumerated in the ployers. Salaries paid to California state execu
appendix, the Commission based its findings and tives have not always been low in relation to
conclusions. other governmental employers. In 1955, Califor
nia ranked considerably better in comparison to
FINDINGS AND CONCLUSIONS various governmental agencies than it does now.
This fact is illustrated in Table II (appendix).
1. Salaries for State Executives Are Low
Further illustration of the lag in the increases of
Conducting the business and administering the
statutory salaries in California is shown below.
responsibility of the government of the State of
California is a tremendous task. Clearly, no one
EXECUTIVE SALARY INCREASE TRENDS IN
man can oversee all of the activities of this vast
GOVERNMENT
state. The Governor requires highly qualified in
1955-1968 AND 1960-1968
dividuals to direct the varied programs of the
many departments in the executive branch of Percent increase
state government. The men heading these depart California 195~8 1900-68
ments require a combination of skills in both Average of 19 departmental
substantive and administrative fields and an un directors -----_______________ 58% 24%
U.S. Government
derstanding of the political environment in
Average of GSj16, 17, and 18 ____ 85 53
which they must function. Typically, such indi New York
viduals are difficult to recruit and retain. Often Average of Commissioners_ ______ 91 80
time, they must make a financial sacrifice to ac Los Angeles County
Average of six department heads __ 75 41
cept their appointment in state government be
cause of the relatively low pay for state execu It is clear that it is time for California to meet
tives. the level of compensation offered by comparable
Obviously, there are inducements other than sal employers in the field of executive salaries.
ary which motivate well-qualified persons to ac
2. Low Statutory Executive Salaries Have Res1tlted
cept appointments as the heads of state depart
in Compaction of the Top Management Salary
ments. Prestige of office and a sense of public
Structure
service are strong incentives for accepting a po
The salaries paid to statutory department heads
sition offered by the Governor, but the state
in the California state government set a ceiling
must also offer salaries which are at least compet
on the entire salary structure within their re
itive with those paid to top executives in other
spective departments. This ceiling includes both
large governmental jurisdictions.
exempt deputy directors and executives in the
In 1965, in its report on management manpower
civil service. From 1964 to 1968, the salaries of
requirements previously referred to, the Commis
department heads have increased by 5.6 percent,
sion stated:
as shown in Table III (appendix). During this
"The highest salaries paid by the State of same time period the salaries of exempt and
California are low when compared to those civil service executives increased as the prevail
offered not only by private industry, but also ing wage increased throughout the economy.
by the State of New York, the Federal Govern Civil service salaries, for example, have been ad
ment, and by some municipal governments justed an average of 21.1 percent since 1964. The
including local governments in California. The result of lagging executive salary adjustments
incongruous fact is that 85 to 90 percent of all has been to reduce continually the salary differ
California state employees in the lower and ential between the director and his subordinates.
middle ranks are paid salaries comparable to This narrowing differential has occurred further
those of employees doing equivalent work in into the lower subordinate levels of the depart
private industry. However, those men and ments as the salaries of directors have remained
women who serve in positions at the upper unchanged. The inadequacy of the supervisory
management levels are, by and large, paid salary differentials in many of the departments
salaries significantly below the compensation is illustrated in Table V (appendix).
of individuals doing comparable work else
The differentials between executives in Califor
where."
nia state government are extremely narrow in
This statement is still true today. Table I (ap comparison with the differentials offered by not
pendix) shows a sample of the salaries paid to only private industry but by other governmental
top executives by our Federal Government, the employers. Table IV (appendix) shows typical
State of New York, the County of Los Angeles, salary differentials between top executives in
the City of Los Angcles, the City/County of San public utilities, manufacturing firms, and other
Francisco, the City of San Diego, the University governmental jurisdictions as well as California
of California, and various administrative officers State Government. Clearly, the current salary
of several counties throughout the state. The sal differentials between directors and their deputies
aries shown in Table I are not intended to im are inadequate. The following chart illustrates
ply that direct job comparisons were made; how salary differentials between directors and
rather, they illustrate the significantly higher their chief deputies have gradually diminished
salaries being paid by other governmental em- during the past several years.
s
PERCENTAGE DIFFERENTIALS BETWEEN
DIRECTORS AND DEPUTY DIRECTORS
1955-1968
PERCENTAGE
20
20 --------------------------------------------------------------
16%
~
15 15
10 10
8%
5 5
3.25%
M
o o
1955 1960 1962 1964 1964* 1965 1966 1967 1968
SELECTED YEARS
• After adjustments of August 22, 1964. This graph is based on the following departments: Agriculture, Conservation, Corrections,
Education. Employment, Fish and Game, General Services, Highway Patrol, Justice, Mental Hygiene, Motor Vehicles, Parks and
Recreation, Professional and Vocational Standards, Public Health, Public Works, Rehabilitathm, Social Welfare, Veterans Affairs,
Water Resources, and Youth Authority.
The impact of inadequate salary differentials be years through the creation of new positions and
tween departmental directors and their chief various adjustments of statutory salaries by the
deputies has been felt deeply in the salary struc Legislature. It would appear reasonable to re
ture of many departments and has affected many duce the number of levels and to establish fewer
civil service positions. The result of the low sal but more meaningful differentials between the
ary ceilings in these departments has necessi various executive salary levels.
tated shortening the salary ranges of many civil
4. There Is No Established Method or Procedttre
service classes to less than the normal five-step,
for Review of Exec1ttive Salaries
or 21-percent, salary range. This occurs when
the maximum salary of the civil service range A major defect in the state's executive compen
approaches that of the exempt deputy director sation system is the lack of a procedure for the
or the director of the department, and the range planned periodic review, evaluation, and adjust
has been narrowed artificially to maintain a mini ment of executive salaries. At the federal level,
mum differential. Positions at this level in pri these functions are handled by the "Commission
vate industry typically offer a salary range of on Executive, Legislative, and Judicial Salar
30 to 40 percent and more·. Currently, there are ies." Los Angeles County recently established a
108 civil service classes involving more than 260 "county pay review committee" to make salary
persons whose salary ranges have been narrowed. recommendations for executives, department
heads, and their chief deputies. In past years
3. There Are an Excessive Number of Statutory comprehensive studies of the state's executive
Salary Levels in the Executive Branch salary structure have been conducted, but these
An examination of the salaries of administrative have not resulted in a permanent mechanism for
statutory positions shows that there are 15 dif salary review and adjustment. In 1965, the Com
ferent salary rates. The diffe·rentials between mission on California State Government Organ
these vary from 28.5 to 0.9 percent. These levels ization and Economy proposed a citizens' "blue
have apparently evolved during the past several ribbon committee" to be appointed by the Gov,-
ernOr every four years to express judgment on RECOMMENDED EXECUTIVE SALARIES
the adequacy of statutory salaries. A similar pro
FOR STATUTORY OFFICfRS
posal is presented later in this report.
Current Proposed
RECOMMENDATIONS Title of executive salary salary
The Commission on California State Government
O.r~~ization a~d Economy recognizes that the possi Director of Finance ___ .... ______________ $31,835 $35,000
bIlIties for realIgnment of the executive salary struc Agency Secretaries (4) ___________________ 28,875 35,000
ture in the State of California are infinite. In the Director of Mental Hygiene_~ .. _________ 27.300 32.500
opinion of the Commission adjustments can be recom Director of Public ~~",.,,~a;.._ 27.300 32.500
mended only with the understanding that this rec
Superintendent of Banks_ ________________ 25.725 30,000
ommendation encompasses the governmental structure
Commissioner of Corporations ____________ 25,725 30,000
as it exists today. The problem of compaction is so "'Director of Employment. ________________ 25,725 30,000
acute today that immediate relief is a necessity. Pro Insurance Commissioner _________________ 25,725 30,000
vision for periodic refinement and modification of the Director of Public Works ________________ 25,725 30,000
Savings and Loan Commissioner_ _________ 25,725 30,000
executive salary structure is a part of the Commis Director of Social Welfare _______________ 25.725 30.000
sion's recommendation and this important feature of Director of Watar Resources_ 25,725 30.000
the study cannot be overemphasized. "'Director of Human Resources Development 25,725 30.000
Department of Agriculture _______________ 24,675 30.000
A. Executive Salaries Director of Correctio1lll __________________ 24.675 30,000
Director of General Services ______________ 24,675 30,000
1. It is recommended that the relative salary rela Director of Industrial Relatio1lll __________ 24.675 30,000
tionships of department heads be generally re Director of Motor Vehicles _______________ 24.675 30.000
tained as they have evolved through past legis Director of Youth Authority _____________ 24,675 30.000
Director of Health Care Services __________ 23,625 30,000
lative action. It is proposed, however, that
Commissioner. California Highway PatroL_ 23.625 30.000
positions with similar levels of responsibility
be grouped at fewer levels of pay as shown in Director of Alcoholic Beverage ControL ___ 23,625 27.500
Director of Conservation_ -------------- 23,625 27,500
the table to the right. Director of Fish and Game. ._ ____________ 23,625 27,500
2. The proposed salaries for statutory officers: Executive Officer. Franchise Tax Board_ ___ 23,625 27,500
Director of Parks and Recreation ___ .. ____ 23,625 27,500
a. Reflect the combined judgments and opin Real Estate Commissioner _______________ 23,625 27,500
ions of knowledgeable officials in the execu Director Rehabilitation __________________ 23.625 27,500
Director of Veterans Affairs ______________ 23,625 27.500
tive branch and members of this Commission Director of Commerce ___________________ 23,625 27.500
concerning relative rankings of responsibili Director of Professional and Vocational
Standards ____________________________
ties and program complexities for the posi 22.575 27.500
tions listed. This grouping basically retains
Director of Harbors and Watercraft _______ 22.575 25.000
the existing salary groupings of department Director. California Disaster Office ________ 22.575 25,000
heads as they have evolved through legisla Director. Department of Housing and
tive action. Community Development_ _____________ 22,575 25,000
b. Permit meaningful differentials between sal
ary levels in the executive branch by reduc • Und .... the provUUOIlll of AD 1463 the Department of Employment will be abolished
by JlIIluary I, 1970. The function. of the D.partment of Employment will be hlilldled
ing the number of salary rates from 15 to 5 by the newly ostablished Department of Hu!D.llll ~0001 Development.
with a significant dollar spread between NOTE: The Adjutant General was excluded sinee the statu""" pronde that his !IIllarJ
levels. shall be that of a lieutenant general in the United States Army.
c. Provide a comprehensive understandable
plan of compensation which will more ade these departments is acute because of the high
quately provide recognition for the contribu salary level of the medical staff in the depart
tion of the state's statutory executives. ments and the various organizational levels in
d. Permit the remedy of salary compaction and those departments. To recruit capable staff with
other inequities to a substantial degree. It is the particular professional and educational re~
acknowledged, however, that a complete rem quirements for these departments has required
ed.y will not be achieved in all departments. a salary structure which is very high in relation
e. Establish compensation at levels designed to to nonmedical departments in state government.
attract and retain highly qualified people in It is the conclusion of the Commission that the
state government. salaries of medical department heads be related
f. Result in increases in salaries for these posi internally to the salaries of other statutory ex
tions from 9.9 to 26.9 percent. ecutives in state government. Secondary consid
eration was given to the prevailing salary rates
3. Medical Department Heads
for medical executives in other governmental
The salary recommendations for medical direc
tors (Departments of Mental Hygiene and Pub jurisdictions.
lic Health) are modest in view of prevailing
B. Board and Commission Member Salaries
salaries for positions of this type in certain
1'he question of salaries for board and commission
other jurisdictions. The Commission found, how
ever, that these department heads have unique members presents a particularly difficult problem.
salary problems. The compaction of salaries in There are over 350 members on the numerous
10
boards and commissions. There are four basic cate 1. Full-Time Board and Commission Members
gories of board and commission members for sal The salary structure for full-time board and
ary purposes: commission members was established by group
-Full-time board and commission members who ing members at similar pay rates into four basic
are paid on an annual basis. pay levels from $18,000 to $30,000 per year.
These pay levels generally reflect salary levels
-Part-time board and commission members who
which are reasonable in relation to th()Se pro
are paid on an annual basis.
posed for statutory executives. In addition, it
-Part-time board and commission members who is recommended that the presiding officer of a
are paid a daily rate for each official meeting full-time board or commission receive a salary
attended. 5 percent higher than the regular members of
- Part-time board and commission members who the board or commission to reflect his additional
do n()t receive compensation but are reim responsibilities. The table below indicates the
bursed for expenses incurred in performing proposed annual salaries for the various full
their official duties. time board and commission members.
RECOMMENDED SALARIES FOR FUL .... l1MI BOARD AND COMMISSION MEMBERS
Current annual salaries Propoeed annual salaries
I
Board or Commission Member Presiding officer Member Presiding officer
Public Utilities Commiesion ____________________________ $26,250 (4) $26,775 $30,000 $31,500
Unemployment Insurance Appeals Board ________________ 25,200 (4) 25,725 27,500 28,875
Adult Authority ______________________________________
21,525 (6) 22,050 25,000 26,250
Board of Equalization _________________________________ 21,525 (4) 22,050 25,000 26,250
State Water Resources Control Board ___________________ 21,525 (4) 22,050 25,000 26.250
Youth Authority Board_ _______________________________ 21,525 (7) -------- 25,000 26,250
Alcoholic Beverage Control Appeals Board _______________ 14,700 (2) 15,225 18,000 18,900
I
NOTE: This table does not include the Worklllen'. Compenation Appeals Board, since the ..t ute. provide that their salaries IIhall be at parity with Superior Court Jud,pe, 1I'biehis equal
to 130,672 per year.
2. Part-Time Board and Commission Members bers be increased 20 percent to maintain their
Receiving an Annual Salary salaries in relation to those of department
Board and commission members in this categ()ry heads. The proposed salary rates for these posi
devote a portion of their time to their duties. tions are shown in the table below:
The annual salaries established by statute for
3. Board and Commission Members Receiving
these positions are intended to recognize their
Daily Rate Compensation
responsibilities and the estimated time spent by
the appointees in carrying out their duties. There are 293 part-time board and commission
The Commission proposes that the salaries es members who are compensated on a daily basis
tablished for these board and commission mem- for each official meeting attended. This compen-
RECOMMENDED SALARIES FOR PART-TIME BOARD AND COMMISSION MEMBERS
I
Number of Current Proposed
Title positions annual salary annual salary
*Chairman, Board of Barber Examiners ____________________________________ 1 $9,345 $11,214
*Member, Board of Barber Examiners_ 2 8,820 10,584
Commissioner, Board of Harbor Commis;i~~~;;f~;-H~~b~idtB~_;;~~~=====~== 2 525 630
Commissioner-Secretary, Board of Harbor Commissioners for Humboldt Bay __ I 1,890 2,268
Chairman, California Women's Board of Terms and Parolcs _________________ 1 9.450 11,340
Member, California Women's Board of Terms and Paroles ___________________ 5 8,925 10,710
Chairman, Narcotic Addict Evaluation Authority __________________________ 1 10,500 12,600
M M e e m m b b e e r r , , N St a a r t c e o P ti e c r s A o d n d n i e c l t B E o v a a r l d u _ a _ ti _ o _ n _ _ A _ u __ th _ o _ r _ i _ t _ y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 0 ______ 3 9,975 11,970
5 8,400 10,080
. • The chairman and two membera of the five-member Barber Board serve in a full-time (!Ilpaeity. Collllnisl!ioner Manning 1. Post. Vice chairman, does not ~oneur with this l'IlOommendation
for salary i ........ in that he beli ...... s itineonsistent with a prior I'''''J)O<jIIl of this Con:unission that the use of Barber Board membem in this (!Ilpaeity bediscontinued. (Bee "An Examinatioll
of the D<Jpa.rtment of Professional and Vocational Standards", September 1967,)
11
sation is ~n addition to any reimbursement they It is recognized that additional funds may be re
may reCeive for expenses incurred in the per quired to permit the relief of compaction between
for:nance of their duties. The basis of compen administrative levels for both exempt and civil
sation for these positions is unclear and the service positions. This should be taken into ac
wide variety of rates paid to members of dif count at an appropriate time in the budgetary
ferent boards and commissions does not appear process.
to provide a logical salary structure. In the
short time provided for this study the Com E. Positions Whose Salaries Should Not Bo Set by
mission was not able to evaluate the salary Statute
structure for this group. Therefore the Com As stated earlier, there are a number of exempt
mission is not making a salary recommendation positions whose salaries are set by statute for
for positions of this type. We do urge how which salary proposals have not been made. It is
ever, that attention be given to the salary needs recommended that the salaries of the following
of this group in the near future. positions now established by statute be subject
to Section 18004 of the Government Code, which
C. Governor's Secretaries' Salaries
would cause their salary to be subject to the ap
Section 12001 of the California Government Code proval of the Department of Finance. These posi
provides: tions are:
"The Governor may appoint and fix the sala Administrative Director," Division of Industrial
ries of such secretaries and other personnel as Accidents ($30,572 per year)
he deems necessary for his office. No salary fixed Consumer Counsel ($18,900 per year)
under this section shall exceed $16,500 an. Deputy Director of Employment ($21,525 per
nually, except the salary of the Executive Sec year)
retary to the Governor shall not exceed $24,500 Secretary, California Horse Racing Board ($14,-
annually, and the salaries of eight secretaries 700 per year)
to the Governor, including not more than two State Architect (General Services) ($23,000 per
legislative secretaries, shall not exceed $20,000 year)
annually.' , State Fire Marshal ($18,900 per year)
This section was amended by Assembly Bill 32 State Printer (General Services) ($20,475 per
and incorporated in the Budget Bill, which au year)
thorized the Governor to set the salaries of the State Planning Officer (Finance) ($21,000 per
secretaries covered in Section 12001 of the Gov year)
ernment Code at a rate 5 percent above the maxi
mum salaries specified in that section. The cur • Th,? statute now sets th!s salary at parity with superior court
Judges.
rent maximum salaries are: Executive Secretary
F. Executive Salary Review Committee
$25,725 annually and the eight secretaries of the
Governor $21,000 annually, other personnel $17,- As mentioned previously, there is a need for a
325 annually. more timely and systematic review of statutory
salaries. In addition, there is a need for coordi
The salary limits available to the Governor should
nation of salary aetion between civil service sala
be increased in order to provide salaries for the
ries established and maintained by the State
Governor's secretaries which are comparable to
Personnel Board, salaries approved by the Depart
those for other top-level administrators. It is rec
ment of Finanee, and those set by the Legislature.
ommended that Section 12001 of the California
It is recommended that the state provide for a
Government Code be amended to provide that the
system of future review and adjustment of execu
Executive Secretary's salary maximum shall not
tivc statutory salaries which will keep them cur
exceed $35,000 annually and that the eight secre
rent and competitive. It is proposed that a "Com
taries to the Governor shall not exceed $27,500
mittee on Executive Salaries" be established. The
annually. It is believed that these limits will per
membership of this Committee would consist of
mit a logical salary relationship with other statu
the following: (1) the Governor's Appointment
tory executive salaries and provide flexibility of
Secretary, (2) a public member appointed by the
salaries dependent upon the scope and degree of
Senate, (3) a public member appointed by the
responsibility vested in the positions at any given
Assembly, (4) the Chairman of the Commission
time. Other personnel under this Scction 12001
on California State Government Organization and
shall receive a salary not to exceed $20,000
Economy, (5) a member of the Commission on
annually.
California State Government Organization and
D. Appropriation of Funds Economy appointed by the chairman of the com
It is recommended that funds totaling approxi mission, (6) a member of the State Personnel
mately $375,000 be appropriated to make possible Board, and (7) the Director of the Department of
the various salary adjustments proposed. $270,000 Finance.
would come from the General Fund with the bal The staff assistance to this Committee would be
ance of $105,000 to be allocated from special supplied jointly by the Department of Finance
funds. This total amount represents less than one and the State Personnel Board. The Committee
hundredth of 1 percent of the salaries and wages would be appointed biennially on January 30 com
of the executive branch for the 1968-69 fiscal year. mencing in 1970. The term of appointment would
12
be for one year. The Committee would take into ac responsible and impartial group. The recommen
count in its study all pertinent data regarding dations of the Committee will serve to bring to
salary changes of state personnel and similar exec the attention of the Legislature and the adminis
utive positions in other private and governmental tration the salary needs of these key executive
organizations. positions. In addition to determining what salary
The establishment of this Committee and its peri adjustments are warranted, the Committee will as
odic review of executive salaries should help to sist in maintaining equitable salary relationships
prevent some of the serious salary compression internally among the various executives and will
problems that the state is now facing. It will pro reflect in the salary structure organizational and
vide an objective review of pertinent data by a legislative changes as appropriate.
13
APPENDIX I
TABLES
1. Annual Salaries of Selected Government Officials as of July 1, 1968.
2. Comparative Salary Rankings of Department Heads in Five Government
Jurisdictions for Selected Years.
3. Salary History From 1955 to 1968 for All Departmental Directors.
4. Average Salary Differentials Between Top-Level Executives and Their Im
mediate Subordinates in Government, Public Utilities and Industry.
5, Director's Salary Compared with Salaries of Executive Subordinates.
15
-
0.
TABLE I
ANNUAL SALARIES OF SELECTED GOVERNMENT OFFICIALS AS OF JULY 1, 1968
Prepared 10/25/68
City and County of Various county admini-
U.S. federal government State of New York County of Los Angeles City of I.os Angeles San Franci.:;co City of San Diego" strativc officers University of California
Commissioners of: County
Secretary of AgricultUre Agriculture and Commissioner of Chief of Police Sheriff City Ma.nager Alameda. President
$35.000 Markete $35.500 Agriculture $21,792 $32.820 $24,418 $38,820 $36,000 $45,000
Seuetary of Labor Industry (Labor) Sheriff Director of Parks and Director of Parks and City Attorney Contra Costa Vice President
$35,000 $35,500 $36,516 Recreation $29,484 Recreation $27,180 $33,528 $31.500 $42,500
Director of FBI Conservation Forester and Fire Treasurer Assessor City Engineer Kern Vice President
$30,000 $32.265 Warden $33,696 $29,484 $31,821 $27,576 $27,480 (Admin.) $37,000
Secretary of Interior Corrections Director, Parks and Assistant City Admini- Executive Assistant to Public Works Director Los Angeles Vice President
$35,000 $35,500 Recreation $28,692 strative the Chief Adminis- $27,576 $38,520 (Academic
Director, Bureau of Prisons Ta.x and Finance Assessor Officer $25,704 trative Planning Director Orange Affairs) $34,000
$28,000 $35,500 $36,516 General Manager of Officer $24,060 $26,268 $36,516 Vice President
Director, N "tiona! Park Service General Services Treasurer-Tax Collector Los Angeles Civil Gencral Manager- U tiliti. . Director Riverside (Agricultural Science)
$28,000 $35,500 $30,276 Service ~ Department Personnel 329,954 $26,268 331,584 $30,000
Commi""ioner of Intcrnal Mental Hygiene Chief, Management $27,924 Director of Public Fire Chief Sacramento Vice Presidcnt
Revenue Service $29,500 $38,000 Dh1.sion $23,676 City Engineer Hcalth $32,244 $25,020 $32,568 (Educational
Commissioner of Filsh and Motor Vehicles Director of Mental $31,104 General Manager Police Chief San Bcrnardino Relations)
Wildlife $28,000 $35,500 Hygiene $31,941 Social Serviccs $25,020 $31,932 $32,000
Administrator of General Health Pcrsonnel Director $27,180 San Diego Vice President
Services Administration $38,000 $32,820 City Engineer $33,528 (Planning and
$29,500 Social Services Health Officer $27,852 San Francisco Analysis) $32,500
Commiasioner of Medical $35500 $33,696 $37,032 Vice President
Services $28,000 Conserva. tion 1 Director of Public San Mateo (B usiness and
Secretary of Transportation $35,500 Social Services $37,128 Finance) $32,500
$35,000 Motor Vehicles $33,696 Santa. Barbam Chancellor
Chairman of U.S. Civil Service $35,500 County Engineer $31,440 (Santa Barbara)
Commission $29,500 $32,820 Ventura $37,000
Administrator of Social And $30,996 Chancellor
Rehabilitation Services (Santa Cruz)
$28,750 $37,000
Commissioner of Reclamation
$28,000
"Maximum salary of the rAnge.
TABLE II
COMPARATIVE SALARY RANKINGS OF DEPARTMENT HEADS IN FIVE GOVERNMENT
JURISDICTIONS FOR SELECTED YEARS
Publio Health Public Works Social Welfare
1955
New York _____________ _ 18,500 New York ______________ _ 19,500 New York_______________ 18,500
California ______________ _ 17,500 Califomia _______________ _ 18,000 California______ __ ________ 14,500
Los Angeles County_ ____ _ 16,560 Los Angeles County _____ _ 17,496 Federal_____ _ _ __ __ _ __ __ _ _ 13,000
Federal_ _______________ _ 15,000 Los Angeles City ________ _ 15,672 Los Angeles City _ __ _ __ __ _ 10,000
Federal ________________ _
None for Los Angeles City_ 15,000 Not available for Los Angeles County
1960
Los Angeles County_ ____ _ 21,792 Los Angeles County _____ _ 24,324 Los Angeles City_________ 20,008
California ______________ _ 21,492 California _______________ _ 22,050 California______ __ __ __ _ _ __ 18,180
New York _____________ _ 20,000 New York ______________ _ 21,000 New York_ __ __ _ __ __ _____ 20,000
Federal_ _______________ _ 20,000 FederaL ________________ _ 20,000 FederaL_________________ 17,514
None for Los Angeles City Los Angeles City ________ _ 20,600 Not available for Los Angeles County
1968
New York _____________ _ 38,000 New York ______________ _ 35,500 New York ______________ _ 35,500
Los Angeles County_ ____ _ 33,696 Los Angeles County _____ _ 32,820 Los Angeles County _____ _ 33,696
FederaL _______________ _ FederaL _______________ _ Federal ________________ _
28,750 29,500 28,000
None for Los Angeles City Los Angeles City ________ _ 27,852 Los Angeles City ________ _ 27,180
California ______________ _ 27,300 California _______________ _ 25,725 California _______________ _ 25,7211
17
(XI
TABLE III
SALARY INCRIASE HISTORY FOR STATUTORY DEPARTMENT HEADS SINet 1955
1957 1959 1960 1962 1964 1968
1955
annual Percent Percent Percent Percent Percent Percent
Department heads salaries Salaries increase Salaries increase Salaries inorease Salaries inorease Salaries increase Salaries increase
Aeronauticsl, 2_ _____________ $9,000 $12,000 33.3 $12,600 5 $13,2362 5 $15,225 15 $15,550 2.1 $20,496 32.2
Agriculture _______ -------__ 15,500 17,000 10 17,850 5 18,743 5 19,680 5 23,500 19.4 24,675 5
A C B C l o a o c n m n o k s h m i e o n r e l g v i r c _ c a _ e t B i _ _ o e _ _ n v _ _ ' e _ _ _ r _ _ _ a _ _ _ g _ _ _ e _ _ _ _ _ _ C _ _ - o _ - _ _ n _ - t _ - - r _ _ _ o _ _ _ L _ _ _ _ _ _ _ 1 1 5 5 , , 0 0 0 0 - - - 0 0 - 1 1 6 6 , , 5 5 0 0 - - - 0 0 - 1 10 0 - - - 1 1 7 7 , , 3 3 2 2 - 5 5 5 5 - - - - 1 1 8 8 , , 1 1 9 9 - - 1 1 - - 5 5 - - - - 1 1 H 9 8 I, , , 1 5 1 0 0 2 - 1 - 1 2 5 5 - - - - 2 2 2 2 2 4 , , , 5 5 5 0 0 0 -- 0 0 0 2 2 1 8 1 7 - . . . 3 4 - 8 2 2 2 2 2 3 3 5 , , , , 5 6 6 7 7 2 2 2 5 5 5 5 5 5 5 --
Corporations_ _______ ---____ 13,500 15,000 11.1 15,750 5 16,538 5 17,365 5 24,500 41 25,725 --
Corrections ______ ------____ 17,000 19,000 11.8 19,950 5 20,948 5 20,948 0 23,500 12.2 24,675 5
Disaster Office· _____________ -- -- -- -- -- -- -- 18,552 21,500 15.9 22,575 5
E Fi m na p n lo c y e m __ e _ n _ t _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ - _ - _ - _ _ _ _ _ __ _ 17,000 19,000 U.8 19,950 5 20,948 5 20,948 0 24,500 17 25,725 5
Fish and Game _____________ 2 1 1 4 , , 0 5 0 0 0 0 2 1 7 6 , , 0 0 0 0 0 0 2 1 8 0 . . 6 3 2 1 8 6 , , 8 8 7 0 5 0 6 5 .9 3 1 0 7 , , 3 6 1 4 9 0 5 5 3 1 0 8 , , 3 5 1 5 9 2 0 5 .2 2 3 2 0, , 3 5 1 0 9 0 2 0 1 .3 3 2 1 3, , 6 8 2 3 5 5 5 5
F G H H r e a e a n r a n b e l c t o r h h a r i l s C s S e a a e n T r r e d v a i S x W c e e _ r s a _ v 5 t _ _ i e _ c _ r _ e _ c s _ _ r _ _ a _ _ _ f _ _ t _ _ _ ' _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 15,5 - 0 - -- - 0 - 17,00 - - - - - - 0 9 - - .6 - - 17,85 - -- - 0 5 - - - - - - 18,74 - - - 3 - - - 5 - - - - - - 19,68 - - - - 0 - - 5 - - -- - - 2 2 2 3 , , 5 5 0 0 - - - - 0 0 14 - - - . - 3 - - 2 2 2 2 2 2 3 4 , , , , 5 5 6 6 7 7 2 7 5 5 5 5 5 5 - - - -
Highway PatroL ___________ 15.000 16,500 10 17,325 5 18,191 5 19,101 5 22,500 17.8 23,625 5
Housing and Community
Development'_ ___________ -- -- -- -- -- -- -- -- -- -- 22,575 --
I In n s d u u r s a t n ri c a e l _ R _ e _ l _ a _ t _ io _ n __ s _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ 15,000 16,500 10 17,325 5 18,191 5 19,101 5 23,500 23 24,675 5
15,500 17,000 10 17,850 5 18,743 5 19,680 5 24,500 24.5 25,725 5
Mental Hygiene_ ___________ 18,000 22,500 25 23,625 5 24,806 5 24,806 0 26,000 4.8 27,300 5
M Pa o r t k o s r a V n e d h i R c e le c s r _ e _ a _ t _ io __ n _ ' _ _ _ _ _ _ _ _ _ _ _ _ 16,00 -- 0 19,00 - 0 - 18.7 19,95 - 0 - 5 -- 20,94 -- 8 5 -- 2 1 0 8 , , 9 5 4 2 8 2 0 -- 2 2 2 3 , , 5 5 0 00 0 1 21 2 . . 4 2 2 2 4 3 , , 6 6 7 2 5 5 5 5
Professional and
P R P u u e V b b a l l l o i i c c E c a s W H t t i a o e o t n a r e a l k _ t l s h _ S _ _ _ _ t _ _ a _ _ _ n _ _ _ _ d _ _ _ _ a _ _ _ _ rd _ _ _ _ _ _ s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1 1 1 3 7 8 3 , , , , 5 5 0 5 0 0 0 0 0 0 0 0 2 1 1 1 0 5 9 5 , , , , 0 5 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 . . . . 1 1 1 4 2 2 1 1 1 0 5 5 , , , , 0 4 7 7 0 7 5 5 0 5 0 0 5 5 5 5 2 2 1 1 1 2 6 6 , , , , 4 5 0 5 9 3 5 3 9 8 8 0 5 5 5 5 2 2 1 1 2 1 7 7 , , , , 0 4 3 3 5 9 6 6 0 9 5 5 5 0 0 5 2 2 2 2 1 4 6 2 , , , , 5 5 0 5 0 0 0 0 0 0 0 0 2 2 1 2 1 3 1 9 . . . 1 8 5 2 2 2 2 2 7 5 3 , , , , 5 3 7 6 7 0 2 2 5 0 5 5 5 5 5 5
Rehabilitation 8_ ____________ -- -- -- -- -- -- -- 22,500 -- 23,625 5
Savings and Loan __________ 13,500 15,000 11.1 15,750 5 16,538 5 17,365 5 24,500 41 25,725 5
Social Welfare _____________ 14,500 16,500 13.8 17,325 5 18,191 5 19,101 5 24,500 28.3 25,725 5
Veterans Affairs_ ___________ 13,500 15,000 11.1 15,750 5 16,538 5 17,365 5 22,500 29.6 23,625 5
Water Resources' ___________ -- 20,000 -- 21,000 5 22,050 5 22,050 0 24,500 11.1 25,725 5
Youth Authority ___________ 14,500 19,000 31 19,950 5 20,948 5 20,948 0 23,500 12.2 24,675 5
Average _______________
$15,261 $17,562 15.1 $18,462 5.1 $19,386 5 $19,824 2.3 $23.461 ~J8.3 $24,512 5.6
I Director deleted from .tatutory equali.,.tion plan in 1967. • Department established in 1986•
• Director recei'Ved increase in 1961 to 114,500. • Department eetabliohed in 19611; saI.a.ry of director eetabli8bed at 118,000 per year; funetioD8 tranofemd !'rom De
I Departments established in 1961; salaries of directors set at $17.640 per year; the two departments were created frOD! partment of Indu.trial Rda.tions.
abolished Department of Natura! Resources. • Department eetablished in 1963; wary of director eetablished at 119,101 per year.
« Department ",tablished in 1961. • Department eetablished in 1957•
• Department established ill 1963; saI.a.ry of director established at 121,500 per year.
TABLE IV
AVERAGE SALARY DIFFERENTIALS BETWEEN TOP LEVEL
EXECUTIVES AND THEIR IMMEDIATE SUBORDINATES IN
GOVERNMENT, PUBLIC UTILITIES AND INDUSTRY
l. New York State _______________________ 17.3
2. Los Angeles County_ ----------------- 23.4.
3. San Francisco City/County_ ____________ 20.5
4. Utilities-communications ______________ 40.01
5. Utilities-gas and electric ___ ---------- 37.01
6. Durable goods manufacturing __________ 38.01
7. Nondurable goods manufacturing_ _______ 4.1. 01
8. California State-existing _______ --___ -_ 3.3
1 Based on tbe 1967 AMA Top Management Reparl.
TABLE V
DIRECTOR'S SALARY COMPARED WITH SALARIES OF EXECUTIVE SUBORDINATES
Level II
II
(chief Level III Level IV Difference between Difference between Difference between
Level I deputy (division (bureau Level I and II Level I and III Level I and IV
(director) director) chief} chief)
monthly monthly monthly monthly
Department salary salary salary salary Dollars Percent Dollars Percent Dollars Percent
Finance _______________
$31,835 $26,796 $26,232 $24,912 5,039 18.8 5,603 21.3 6,923 27.7
Mental Hygiene _______ 27,300 27,276 27,264 27,252 24 0.1 36 0.1 48 0.1
Public Health _________ 27,300 27,264 27,252 27,240 36 0.1 48 0.1 60 0.2
Employment __________ 25,725 23,712 21,516 19,512 2,013 8.4 4.,209 19.5 6,213 31.8
Public Works __________ 25,725 25,704 25,692 25,680 21 0.1 33 0.1 45 0.1
Social Welfare _________ 25,725 23,712 21,516 19,512 2,013 8.4 4,209 19.5 6,213 31.8
Water Hesources _______ 25,725 25,689 25,677 24,912 36 0.1 48 0.1 813 3.2
Agriculture ____________ 24,675 24,660 22,584 18,576 15 0.1 2,091 8.4 6,099 32.8
Corrections ___________ 24,675 24,660 24,648 21,000 15 0.1 27 0.1 3,675 17.5
General Services _______ 24,675 24,660 23,712 22,584 15 0.1 963 4.0 2,091 9.2
Franchise Tax _________ 23,625 23,604 20,496 18,576 21 0.1 3,129 15.2 5,049 27.1
Highway PatroL ----- 23,625 23,604 22,044 19,044 21 0.1 1,581 7.1 4,581 24.0
Industrial Relations ____ 24,675 22,044 22,044 18,576 2,631 11.9 2,631 11.9 6,099 32.8
Motor Vehicles ________ 24,675 24,660 21,516 18,576 • 15 0.1 3,159 14.6 6,099 32.8
Youth Authority _______ 24,675 24,660 23,712 22,584 15 0.1 963 4.0 2,091 9.2
Conservation __________ 23,625 23,604 22,584 20,496 21 0.1 1,041 4.6 3,129 15.2
Fish and Game ____ 23,625 23,604 20,496 18,576 21 0.1 3,129 15.2 5,049 27.1
Parks and Recreation __ 23,625 23,604 22,584 20,496 21 0.1 1,041 4.6 3,129 15.2
Rehabilitation _________ 23,625 22,584 20,496 17,700 1,041 4.6 3,129 15.2 5,925 33.4
Veterans Affairs _______ 23,625 21,516 18,576 16,860 2.109 9.8 5,049 27.1 6,765 40.1
Professional and Voca-
tional Standards _____ 22,575 21,516 19,512 18,576 1,059 4.9 3,063 15.6 3,999 21.5
COMPACTION IN THE CALIFORNIA STATE SERVICE
Tho attached table illustratee the ""I""y compaction problem in the California State Service lIB of July I, 1968.
This table represent. the largest 21 state ageneies. (Departments with elected heade were exeluded.) Tbeye.elude medical positio"" except where top-line management is headed by & medical
doctor, 88 in the Department of Public Health.
Comparisons of salaries are made at their ltJaximum only.
These comparisons are between four management levels. Typically, these are:
Levell - The director (usually appointive).
Level II - The chief deputy director (usually exempt).
Level III-The division cblef or aasistant director (usually civil service),
Level IV - The bureau chief or _i.tant division chief (usually civil service).
At Level II, III, or IV, if more than one claosification exists in an agency, a single repl'l!l!elltativo claasification is shown. A salary at any onolev. Jacm 88. ceiling upon the salary ..' the
next lower level in an organization.
19
APPENDIX II
RONALD REAGAN &tatt of (!!Ultfnrntu
Governor
GOVERNOR'S OFFICE
Sacramento 95814
April 9, 1968
Mr. William Holmes
Chairman
Commission on California State
Government Organization and Economy
110 South A Street
Madera, California 93637
Dear Bill:
Compaction in the salary structure of the executive branch of State Govern
ment is now an acute problem. A review and evaluation of the executive compen
sation system is urgently needed. Therefore, I am asking your Commission to
undertake this study and to report your findings to me and the State Legislature
by February 1, 1969.
To assist the Commission in its work, I am requesting by a copy of this letter
that the California State Personnel Board and the Department of Finance direct
their staff to pro"ide technical assistance for the Commission.
Sincerely,
RONALD REAGAN
Governor
21
RESOLUTION CHAPTER 224
Assembly ConCltrrent Resolution No. l05-Relative to
executive compensation in state service.
[Filed with Secretary of State July 31, 1968.]
WHEREAS, The Legislature has established the policy that like salaries shall
be paid for comparable duties and responsibilities in state service, with con
sideration given to the prevailing rates for comparable service in other public
employment and in private business; and
WHEREAS, The current differential in compensation of superior and subordi
nate state executives is grossly inadequate to recognize substantial differences in
responsibility, to the point where the difference in monthly salary between the
director and the chief deputy director of 14 state departments is less than $2;
and
WHEREAS, The State Personnel Board reported to the Legislature in its An
nual Report on State Salaries and Personnel Management, dated December 1,
1967, that the current compensation for state executives is substantially below
that of executives with similar responsibilities in local government in California
and in other state governments; and
WHEREAS, The Report on Management Manpower Requirements by the Com
mission on California State Government Organization and Economy, dated
February 1965, recommended substantial changes in the approach to establish
ing and maintaining executive compensation in state government; and
WHEREAS, Accepted practice in private industry requires a systematic and
equitable approach to executive compensation; and
WHEREAS, Authority to establish executive salaries in state government is
divided among the Legislature, the Department of Finance, the State Personnel
Board and other duly constituted salary-setting authorities; and
WHEREAS, Levels of compensation which adequately reflect differing levels
of responsibility are a critical source of motivation and recognition for the
creative leadership which is essential to effective state government; now, there
fore, be it
Resolved by the Assembly of the State of California, the Sena.te thereof con
curring, That the Legislature requests the Commission on California State Gov
ernment Organization and Economy to review and evaluate the executive
compensation system in state government and report its findings and recom
mendations to the Legislature within 30 days of the commencement of the
1969 Regular Session; and be it further
Resolved, That the California State Personnel Board and the Department of
Finance are requested to direct their staffs to provide such technical assistance
for the commission as is necessary; and be it further
Resolved, That the Chief Clerk of the Assembly transmit a copy of this reso
lution to the Chairman of the Commission on California State Government Or
ganization and Economy.
22
APPENDIX III
References
A. Reports 2. Civil Service Commission of San Francisco,
1. Theodore Barry and Associates, Los Angeles Salary and Wage Survey, January 1968.
County Executive Compensation Study, De 3. State of Illinois, Summary Report Department
cember 4,1967. of Personnel, Wage and Salary Survey, 1966.
2. California State Assembly, Report of the As
4. State of Maryland, Salary Survey of Executive
sembly Interim Committee on Civil Service and
and Management Classes, October 1968.
State Personnel (House Resolution No. 200),
January 1955. C. Other Sources
3. Commission on California State Government 1. Albert A. Belman, "Trends in Salaries of Clas
Organization and Economy, Management Man sified Workers", Monthly Labor Review, July
power Requirements California State Govern
1968.
ment, February 1965.
4. McKinsey and Company, Inc., Report to the 2. John J. Corson, Public Executive Compensa
tion (Excerpts of a speech delivered at the 1963
Honorable Nelson J. Rockefeller, January 13,
Institute on Pay Plans held by the Public Per
1961.
sonnel Association).
5. Los Angeles County Citizens Economy and Ef
ficiency Committee, Executive Compensation in 3. Ijouis J. Kroeger, "Executive Pay Reform
Los Angeles County Government, May 1968. A Top Priority" Public Personnel Review,
6. Clarence B. Randall, A Businessman Looks at October 1965.
Government Pay, .J anuary 1962.
4. New York State Civil Service Department,
7. Salaries of statutory officials in California State
Classification and Compensation Plan and Sal
Service-A Report to Assembly Interim Com
ary Schedules, July 1968.
mittee on Civil Service and State Personnel by
the State Personnel Board, Department of Fi 5. Public Law 90-206 (Postal Revenue and Sal
ary Act of 1967) Section 225 "Commission on
nance and the Legislative Auditor, 1954.
Executive, Legislative and Judicial Salaries,"
B. Surveys December 1967.
1. American Management Association, Executive 6. Program statements for all State departments
Compensation Service, Top Management Re studied. These were provided by the Depart
port, 18th Edition, November 1967. ment of Finance.
o
jJri"teJ itS CALIPOI.HJA OFFICB OF STArK PUNTING
78152--404 12-68 1]4