Return to Article: Student aid chief took home $250,000 in bonuses
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24361
Lori, you need to give it a break. You folks in the civilian arm always manage to bring in the military. What would her dad being a navy admiral have anything to do with her getting these bonuses. The whole government has been running rampant on handing out these bonuses - always using the excuse that "we need them to retain the best people". If that were true, Shaw would not be leaving. It is a con game that should be stopped, but remember, "Gore wanted to re-invent government". Bush needs to tell these people that if they can do bettter in the private sector, then hit the road. The private sector usually makes its big bucks from the government so lets see if they can make these big bucks elsewhere. The government has a lot of smart people who are willing to do the job without big bonuses. We just forgot about it. The postal service is the same and in one form or another, they are always screwed up. Stop the bonuses and morale and everything else will improve among the federal workforce.
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24079
I work in the financial aid industry and I have to say that there are a few bad apples in every organization and a few bad apples should not spoil the whole bunch! Yes, some reform is needed, in regard to lender lists and creating a code of conduct; however, I believe the majority of the people who work together in this industry-- the government, schools and lenders are doing a great job. It sounds like Shaw was going a great job too, but didn't see the glitch in preferred lender lists or the relationship between certain schools and lenders. It should be remembered that the number of alleged improprieties, compared to the number of lenders, agencies and schools, is relatively small when you see how much good work is done in this industry to deliver funds. Accomplishments have outweighed the problems; reducing the default rate by 40 percent is no small feat and Shaw should be lauded for that!
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23710
Why is everyone so worked up over this? Executive bonuses like this are quite common in the private sector. It's what helps attract and retain top talent. Shaw's accomplishments are impressive. Looks to me like she earned those bonuses. The feds need to continue these perks if they hope to compete with businesses in the quest for exceptional leaders.
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23539
Terry needs to give the money back. How does she sleep at night knowing that the civil servants working for her are lucky to make ends meet. I say put Patricia, Veda, Carol or someone who cares. It's not supposed to be about greed. Terry Shaw should spend time in jail, oh I forgot her Daddy was a Navy Admiral...she had the connections.
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23503
So, the execs get huge bonuses, the folks that actually do the work get squat, the Sallie Mae conspiracy lives on.... Shaw get a bonus larger than most of her employees' salary!
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23461
FSA is by law a Performance Based Organization (PBO) that is managed and structured differently than other federal organizations. The legislation specifically allows bonuses at these levels. Similar amounts were paid to the previous COO and management team under the Clinton administration.
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23414
I worked in FSA and there is clearly no oversight on how taxpayers' money is being spent. Terri Shaw knows about this, and so does its Human Resources unit. It is true about the lowering of the performance apraisals so that employees won't be able to receive cash awards, and yet, senior management awards itself by "a job well done?" How can management justify awarding a director $20K when his contract fell to a $32M shortfall? Where is the accountability for managers who fail to "dliver the best services possible?" You see management and contractors partying together in the open and nothing happens. On a note that circulated through FSA [ca. 2004], "there were 19 bonuses awarded to members of FSA's senior management including Terri Shaw. These bonuses ranged from $33,844 (23.75 percent of annual salary) to $3,756 (4.38 percent of annual salary), with a median bonus of $12,540 (11.13 percent of annual salary). Terri received a bonus approved by the Secretary of $72,500....The rationale for these awards is outlined in the PBO legislation. PBO is a results-driven organization created to deliver the best possible services. It establishes incentives for high performance and accountability for results...To ensure performance, a portion of senior management compensation is based upon the performance of the organization. " Oh pleeeeze!
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23385
I used to work at ED, in fact I have more then 30 years with the Feds. Boy, if only the Taxpayers knew how their money was/is being spent or should I say wasted. There would be a revolution similar to the Tea Party. I think this is the same office that has a number of employees who do nothing and no one is taking them on. Even the HR office was aware of the situation and didn't do a thing about it. Yes, Gore did invent this system but boy, both parties have abused it. Check out the new Attorney recruitment program under USDOJ that was installed under Ashcroft and his cronies. If you're a conservative, you're in.
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23382
Recommend a review of the supervisor's and pay panel evaluation of Ms Shaw's ratings to determine if the problems were a result of Ms Shaw's failure to manage properly.
Seems to be a slanted article.
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23370
In response to L. Lampell, Under Ms. Shaw, we were told that all FSA (GS) employees were to be graded no higher than "Satisfactory" on their performance evals, with the exception of a very few (1 or 2) per each line of business in FSA could receive Excellent or Outstanding grades. Thus, most employees could not receive a bonus based on performance; rather senior managers decided on special bonuses for one or two employees per FSA line of business. Of course, senior Executive Service employees received their bonuses annually, with few exceptions. The excuses were were given was that there just wasn't money in the budget to pay employee bonuses to othere employees. The real waste of money is found in the contracts issued by FSA. That is where real tax money are wasted. In Ms. Shaw's defense, at least she did not take scores of FSA employees on an expense-paid, week-long trip to Disney University at Disney World, as did her predecessor. She saved tax $$ by taking only her senior executives for a few days retreat each year to a posh resort/conference center in northern VA.
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23369
It makes me wonder why Teresa Shaw is leaving, to move on to another agency where she can work the system? None of her theories could have worked if there were not worker bees doing the work.
This waste makes me sick because we know this type of thing goes on and will only get worse when the new "pay for performance" system goes into full force.
Two years ago I needed to go on Travel to Connecticut; I priced the local airports in the DC area. Richmond wanted over $600, Dulles was over $500, and Reagan was over $400 and BWI was $130. I chose BWI eventho it was a two hour drive from home because I couldn't justify the other airport costs. The price for fuel, parking, and my airline ticket did not even add up to $400. Yes, I'm a civilian taxpayer and proud I could save the government money.
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23365
Noted that this extravagant bonus is an unanticipated outcome of the Clinton-Gore team's in some ways laudable effort to recast government in the image of the private sector, where the bonuses paid to CEOs and other top executives are hardly news. Noted also that Ms Shea seems to have made a difference in an office that was apparently getting fleeced by its clients until her arrival. If pay for performance eventually becomes the norm in Federal agencies, we should expect difference makers to be rewarded. Unfortunately, there are many of us in the Federal arena, and I'm one of them, who will work their entire careers making significant and beneficial changes in our own little spheres of influence, who will never see a "bonus" of more than a few hundred or a few thousand dollars. But isn't that how the private sector works, too?
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23363
It's a gigantic shameful act to waste Government money in these ways when the little guys is fighting to keep is over-worked low-paid position to feed his family! We've heard it from the Administration that jobs are eliminated to save taxpayers money...What type of school have they gone to? Totally disgraceful! Some departments cannot reimburse their employees for CME because there's no money but others waste too much!!
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23360
Where do I sign up?! We've been encourage to only reward with time-off awards and if a cash amount a minium, usually only a few hundred dollars. Another make the Federal worker look bad story. Makes those of us who really try to save government dollars and puts in a full, and then some, day on the job wonder if it's worth it. Then we remember the customer we serve.
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23355
I've been a civil servant for almost 35 years, and I can guarantee that this type of situation is virtually unheard of among the "working ranks" of the DoD. I've only known a few people who have received more than one award for every four or five years of service (most feel lucky to get one ever 8-10 years) and even then cash awards are rarely above two or three thousand dollars (a great many are much less). The cash value is, of course, higher in the senior executive ranks but, to my knowledge, NOTHING like that given to Ms. Shaw. I'm shocked that this wasn't caught much earlier, and saddened because it helps to perpetuate a negative view of civil servants in general.
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23352
What were the aggregate amount of bonuses paid by her agency to all eligible employees during those four years?
What percentage of the total available bonus funds for this agency were paid to this one person? Who decided the amount of the bonuses that she received?
And is this what is meant by "Pay for Performance"?
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23346
There are many, many people who would be thrilled to be making one of those annual bonus amounts as his/her full-time salary! I am sure this individual received a handsome salary as well.
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23343
That is quite shocking to discover, and when you realize how much money she took home FOUR years in a row, it brings feelings of anger also. There is no way one person could be doing such superior work to receive such large bonuses. In light of the government having been cutting back on funds for many years, some employees here at BLM haven't received ANY award for FIVE years! Money for awards should be spread out amongst all agencies. This is totally ridiculous and a gross negligence by that agency to let that happen.
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23325
These types of bonuses in the public sector are totally insane--whether FSA is a PBO or not. Public servants should not be entitled to bonuses of up to 1/2 their highly inflated salaries.
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23320
The performance award system is a mess. It wastes taxpayer money on the office favorites and creates scandal and bad feelings. Get rid of it totally.
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23319
This is what happens when the government is asked to be more like the private sector. I don't care how good a job she did, NO federal employee should receive that kind of bonus. It is an embarrassment to all feds.
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23316
This needs to be investigated by a special counsel or the IG as I have worked for the government for 16 years and have never heard of bonus's in the 50-70K range.
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23315
It's a sad state of affairs when the people who are supposed to be helping our children get an education, are taking obscene amounts of money, that could be better spent on education rather than lining the pockets of greedy bureaucrats. But, this is typical of the way our government operates, with no concern for the people who have to pay for all of these extravagant salaries, bonuses, and government waste.
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23313
This is yet another example of Bush's "golden rule". He who rules--gets all the gold. One can only wait to see which financial institution that Ms. Shaw assisted will give her the better golden egg. In the meantime, the American taxpayer will continue to receive the golden shower, the result of "her leadership and depth of experience" in making deals with the loan companies she was supposed to oversee. I can only imagine what you have to have on your resume to go to work in the Bush Administration. Corruption 101, Cheat and Scheme 201, Embezzle 305? President Bush is the only president who makes a republican miss Bill Clinton!
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23299
I think the real picture on NSPS is slowly beginning to emerge.
Wolfowitz takes care of his girlfriend with a massive pay raise, and Shaw gets a $250K bonus to steer business to the private student loan industry. Our MBA presidency wants to bring private industry pay to government.
How does this work in private industry? Let's see, top executives earn multi-million pay packages, while rank and file loose retirement, health care, pay raises, and jobs.
Not to worry Dick Cheney thinks that Wolfowitz is our man for the World Bank.
Do the words Enron and World Com sound familiar? Meanwhile the War in Iraq goes on.
God bless America.
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23296
This is a perfect example of Pay for Performance and just who benefits from it. You don't hear about the clerks who cleared backlogs on applications getting any real bonuses but corrupt and incompetent managers bring in total windfalls.
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