[Federal Register: March 25, 2008 (Volume 73, Number 58)]
[Notices]               
[Page 15779]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25mr08-94]                         


[[Page 15779]]

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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 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' fiscal year 2008--$612,196. 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: Laura Auletta, OFPP, at (202) 395-
3256.

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

    From: Paul A. Denett, Administrator, OFPP.
    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 publicly 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 (FY) 2008 is $612,196. 
This amount is for contractors' FY 2008 and subsequent contractor 
fiscal years, unless and until revised by OFPP. The benchmark 
compensation amount applies to contract costs incurred after January 1, 
2008, 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 Laura Auletta, OFPP, at (202) 395-3256.

Paul A. Denett,
Administrator, Office of Federal Procurement Policy.
[FR Doc. E8-5978 Filed 3-24-08; 8:45 am]

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