3 May 2006
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[Federal Register: May 3, 2006 (Volume 71, Number 85)]
[Notices]
[Page 26114]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03my06-106]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
Determination of Executive Compensation Benchmark Amount
AGENCY: Office of Federal Procurement Policy, OMB.
ACTION: Notice.
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SUMMARY: The Office of Management and Budget (OMB) is hereby publishing
the attached memorandum to the heads of executive departments and
agencies concerning the determination of the maximum benchmark
compensation amount that will be allowable under government contracts
during contractors FY 2006--$546,689. This determination is required
under Section 39 of the Office of Federal Procurement Policy (OFPP) Act
(41 U.S.C. 435), as amended. The benchmark compensation amount applies
equally to both defense and civilian procurement agencies.
FOR FURTHER INFORMATION CONTACT: Julia B. Wise, Office of Federal
Procurement Policy, (202) 395-7561.
Clay Johnson III,
Acting Director.
Memorandum for the Heads of Executive Departments and Agencies
From: Clay Johnson III, Acting Director.
Subject: Determination of Executive Compensation Benchmark Amount,
Pursuant to Section 39 of the Office of Federal Procurement Policy,
(OFPP) Act (41 U.S.C. 435), as amended.
This memorandum sets forth the benchmark compensation amount as
required by Section 39 of the Office of Federal Procurement Policy
(OFPP) Act (41 U.S.C. 435), as amended. Under Section 39, the benchmark
compensation amount is the median amount of the compensation provided
for all senior executives of benchmark corporations for the most recent
year for which data is available. The benchmark compensation amount
established by Section 39 limits the allowability of compensation costs
under government contracts. The benchmark compensation amount does not
limit the compensation that an executive may otherwise receive. This
amount is based on data from commercially available surveys of
executive compensation that analyze the relevant data made available by
the Securities and Exchange Commission. More specifically, as required
by Section 39 of the OFPP Act, the data used is the median (50th
percentile) amount of compensation accrued over a recent 12 month
period for the top five highest paid executives of public-traded
companies with annual sales over $50 million. After consultation with
the Director of the Defense Contract Audit Agency, we have determined
pursuant to the requirements of Section 39 that the benchmark
compensation amount for contractors' Fiscal Year 2006 is $546,689. This
amount is for Fiscal Year 2006 and subsequent contractor fiscal years,
unless and until revised by OMB. The benchmark compensation amount
applies to contract costs incurred after January 1, 2006, under covered
contracts of both the defense and civilian procurement agencies as
specified in Section 39 of the OFPP Act (41 U.S.C. 435), as amended.
Questions concerning this memorandum may be addressed to Julia B.
Wise, Office of Federal Procurement Policy, on (202) 395-7561.
[FR Doc. E6-6629 Filed 5-2-06; 8:45 am]
BILLING CODE 3110-01-P