'Outdated' Contractor Pay Cap Raised 10 Percent
April 23, 2012
The government now will compensate a federal contractor's top five senior most executives up to $763,029 annually, the Obama administration announced April 23, an increase that White House officials and some lawmakers have tried to cap at a much lower rate.
The cap, known as the Executive Compensation Benchmark, now increases by nearly $70,000 from $693,951 — 10 percent higher than in fiscal 2010.
The law requires the administrator of the Office of Federal Procurement Policy (OFPP) to set a benchmark yearly at which the government will reimburse a company for its top five executives.