Section 430.312 - Using performance results(a) Agencies must use performance appraisals as a basis for adjusting pay, granting awards, retaining senior executives, and making other personnel decisions. Performance appraisals also will be a factor in assessing a senior executive's continuing development needs.(b) Agencies are required to provide appropriate incentives and recognition (including pay adjustments and performance awards under part 534, subpart D) for excellence in performance.(c) A career executive may be removed from the SES for performance reasons, subject to the provisions of part 359, subpart E, as follows:(1) An executive who receives an unsatisfactory annual summary rating must be reassigned or transferred within the SES, or removed from the SES;(2) An executive who receives two unsatisfactory annual summary ratings in any 5-year period must be removed from the SES; and(3) An executive who receives less than a fully successful annual summary rating twice in any 3-year period must be removed from the SES.