Senate Introduces Bill Imposing Stricter and Broader Executive Compensation Caps

July 8, 2013

Senate Introduces Bill Imposing Stricter and Broader Executive Compensation Caps

On June 19, 2013, Sen. Barbara Boxer (D-CA), along with three cosponsors, introduced the “Commonsense Contractor Act of 2013” (S. 1192). Rep. Paul Tonko (D-NY) introduced identical legislation (H.R. 2444) in the House on the same day. If passed, the bill would lower the existing reimbursement cap for executive compensation to $230,700. The bill would also broaden the cap’s coverage by making it applicable to all defense and civilian contractor employees. Currently, the $736,000 cap applies only to the salaries of defense contractors and the five highest-paid executives of nondefense government contractors. The bill includes a narrow exception for scientists, engineers, and other specialists if an agency determines that it is necessary to ensure access to professionals with specialized skills. The bill has been referred to the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Governmental Reform. 






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