A Report on
Executive Compensation at State Agencies
SAO Report No. 12-708August 2012
This study was conducted in accordance with Article IX, Section 3.09, of the General Appropriations Act (82nd Legislature).For more information regarding this report, please contact Sandra Vice, Assistant State Auditor, or John Keel, State Auditor, at (512)936-9500.
The decisions of state agencies’ executiveofficers directly affect the delivery of servicesto the citizens of Texas. Therefore, it is in theState’s best interest to ensure equitable payfor executive officer positions to help recruitand retain qualified executive officers capableof effectively and efficiently managing stateagencies. Executive officer salaries had a widerange—from $65,000 to $312,000—as of June30, 2012.A State Auditor’s Office study of executivecompensation identified significant disparitiesamong the salaries of some executive officerscompared with the salaries of other executiveofficers and/or compared with salaries of othermanagement positions at state agencies.Specifically:
Eleven (37 percent) executive officers wereamong the top 30 highest paid managementemployees at state agencies
pages 4 and 5 for more information).. The remaining19 (63 percent) positions were employees inother management positions (see Table 1 on
Ten of the 19 other management positions included deputy directors.
Seven of the 19 other management positions were at the Department ofTransportation (including two deputy directors).
Four executive officers and four other management positions earned highersalaries than the Health and Human Services Commission’s executivecommissioner (commissioner). The commissioner oversees 5 agencies with a
This analysis excluded investment and medical positions.
Exempt Positions, ExecutiveOfficers, and Other ManagementPositions
An exempt positionis exempted from the State’s PositionClassification Plan (Plan). Article IX ofthe General Appropriations Actestablishes conditions for exemptpositions. The schedule of exemptpositions specifies salaries of certainemployees not covered by the Plan.
For the purpose ofthis report, “executive officers” refersto state employees who serve as theadministrative heads for state agenciesand hold titles such as executivedirector, superintendent, andcommissioner. See Appendix 3 for a listof the specific positions covered by thisreport.
Other Management Positions.
For thepurpose of this report, “othermanagement positions” refers to stateemployees who are not executiveofficers and hold titles such as deputydirector, division director, and chieffinancial officer.