Congress OKs Contractor Pay Benchmark
December 14, 2011
Congress is willing to compensate defense contractors' employees more than it does the president of the United States, but, based on the new defense bill, now all of a contractor's employees will be under the compensation cap.
Currently, only a company's top senior executives are under the Executive Compensation Benchmark, which is a means of matching salaries, bonuses, and other benefits packages with what private-sector executives receive. The benchmark is determined by surveys, which are not conducted by the government, of executive pay. It's currently set at $693,951 annually. The president is paid $400,000 each year.
The benchmark is often updated annually. However, the Obama administration decided to not increase the benchmark in 2011. Officials say it would be "excessive," reaching to nearly $750,000.