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FCW : July 30, 2013
26 July 30, 2013 FCW.COM Compensation Contractor compensation rules are slightly different for civilian and defense contractors, said Scott Amey, general counsel at the Project on Government Oversight. For civilian contractors, the ve highest-paid executives in the company are eligible for compensa- tion. As of 2011, the reimbursement applies to all employees of Defense Department contractors. The formula for calculating the cap is complicated, but it boils down to the Of ce of Federal Procurement Policy using commercially available surveys to determine the median amount of compensation earned by the ve highest-paid employees in management positions at publicly traded U.S. companies with annual sales of more than $50 million. The total includes the salaries, bonuses and deferred compensa- tion for senior executives in the most recent year for which data is available. Once OFPP establishes the benchmark compensation amount, it stays in effect until OFPP revises it again. --- Mark Rockwell FINDING THE MEDIAN utive reimbursement is to change the baseline for payments, he added. Instead of tying the cap to the top ve execu- tives' salaries, it should be based on broader compensation data gathered by the Labor Department. "We should use a formula based on public-sector averages and shouldn't conflate salary with compensation," Hodgkins said. The president receives bene ts beyond salary, so using only sal- ary is not the most accurate yardstick, he added. Some who have been watching the battle over the years are con icted about the process and its results but ultimate- ly see a lower reimbursement cap as a roadblock to government contracting. "I can see the arguments from both sides," said Steve Kelman, a professor of public management at Harvard Uni- versity's Kennedy School of Government and former administrator of the Of ce of Federal Procurement Policy. Savings are vital to government, yet government also needs top talent working on some of its most dif cult problems, he added. Ultimately, Kelman argued that reform should affect all executives, not just those working on government contracts. "I come down on the side of if you want to address pay inequality, do it through tax law and don't single out government contractors," he said. "That deters companies from doing business with the federal government." ■ REGISTER NOW AT: www.fcw.com/ExtendedEnterprise SPEAKER: BERNARD J. MAZER, CIO, DEPARTMENT OF THE INTERIOR CLOUD AND MOBILITY: ENABLING THE EXTENDED ENTERPRISE AUGUST 13 @ 2:00PM EST BROUGHT TO YOU BY FCW Webcast Series: second installment FREE Join this webcast, to hear strategies that take full advantage of the cloud but make security and performance top priorities. SPONSORED BY
July 15, 2013
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