CFPB Employees Receive Raises, Lump Sum Awards
The CFPB has compensated every employee who received a three or four out of five on performance reviews from the last two years with additional pay raises and lump sum awards, according to a spokesperson.
These employees received a total 3.73% merit salary increase as well as lump sum awards in amounts that vary based on the employee’s position and performance.
While the compensation process is complete, the CFPB spokesperson was not able to disclose the total amount paid. The bureau’s earlier estimate for the payouts was $5 million to $5.5 million.
The decision to adjust the lower ratings to a Role Model (5) was made after racial disparities on performance reviews were revealed.
The House Financial Service Committee later held hearings with former and current CFPB employees who alleged that their managers had engaged in racial and gender discrimination.
Earlier this month, CU Times asked CFPB Director Richard Cordray if he made the decision to retroactively grant the raises.
“I have no comment on that,” Cordray said, before walking away.
According to information the CFPB shared with the National Treasury Employees Union, the bureau provided lump sum payments to covered employees retroactively.
“For each covered employee, CFPB will calculate the difference between the supplemental lump sum actually received, and the lump sum that employees would have received for FY12 and FY13 if they had been rated as Role Model (5) for both years,” the CFPB’s plan read.
The bureau also increased each covered employee's base salary to the amount he or she would be earning by receiving a Role Model (5) rating for FY2012 and FY2013.
“For each covered employee, the bureau will calculate the difference between the salary increase actually received and the salary increase the employee would have received for FY12 and FY13 if the employee had been rated as Role Model (5) for both years,” information provided by the CFPB to NTEU, read.
“The bureau will provide a lump sum payment for the total amount of the difference. This amount will be calculated for all of FY13 and FY14 to date (through the pay period of payment.)”
The NTEU said in June it was seeking relief for individuals who received a one or two rating.
The CFPB has not announced any arrangements for those employees at this time.