(a) The Secretary or designee establishes and administers a compensation system based on:

1. (1) The compensation strategy in § 158.601;
2. (2) Information from strategic talent planning described in § 158.401(c);
3. (3) Generally recognized compensation principles and practices; and
4. (4) Strategic talent priorities.

(b) The compensation system comprises:

1. (1) The salary system described in § 158.610; and
2. (2) Additional compensation described in § 158.603.