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

(1) The compensation strategy in § 158.601;

(2) Information from strategic talent planning described in § 158.401(c);

(3) Generally recognized compensation principles and practices; and

(4) Strategic talent priorities.

(b) The compensation system comprises:

(1) The salary system described in § 158.610; and

(2) Additional compensation described in § 158.603.