delete PART 1330—HUMAN RESOURCES MANAGEMENT
Establishes OPM/OMB certification process allowing federal agencies to pay senior executives above standard caps (Level III Executive Schedule) up to Level II or VP-level compensation if their performance appraisal systems demonstrate meaningful performance differentiation. Sets nine certification criteria including alignment with agency mission, results-oriented expectations, oversight, accountability, and pay differentiation tied to performance ratings.
Keeping this regulation raises direct costs by increasing compensation ceilings for senior bureaucrats and adds bureaucratic overhead through certification machinery. It institutionalizes the flawed premise that government must competitively pay executives to attract talent—when limited government should shrink, not expand, administrative payroll. Unseen effects include incentives to game performance metrics and mission creep to justify higher pay, while drawing human capital from productive private enterprise into unproductive administration.