[Federal Register: May 2, 2003 (Volume 68, Number 85)]
[Notices]               
[Page 23501-23502]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02my03-93]                         

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OFFICE OF MANAGEMENT AND BUDGET

 
Office of Federal Procurement Policy; Determination of Executive 
Compensation Benchmark Amount Pursuant to Section 808 of Public Law 
105-85

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 that will be allowable under government contracts during 
contractors' FY 2003--$405,273. This determination is required to be 
made pursuant to Section 808 of Public Law 105-85. It applies equally 
to both defense and civilian procurement agencies.

FOR FURTHER INFORMATION CONTACT: Richard C. Loeb, Executive Secretary, 
Cost Accounting Standards Board,

[[Page 23502]]

Office of Federal Procurement Policy, on (202) 395-3254.

Angela B. Styles,
Administrator.

To the Heads of Executive Departments and Agencies

    Subject: Determination of Executive Compensation Benchmark Amount 
Pursuant to Section 808 of Pub. L. 105-85.
    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 all benchmark 
corporations for the most recent year for which data is available.'' 
The ``benchmark compensation amount'' established as directed 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.
    Based on a review of commercially available surveys of executive 
compensation and after consultation with the Director of the Defense 
Contract Audit Agency, I have determined pursuant to the requirements 
of section 39 that the benchmark compensation amount for contractor 
fiscal year 2003 is $405,273. This benchmark compensation amount is to 
be used for contractor fiscal year 2003, and subsequent contractor 
fiscal years, unless and until revised by OMB. This benchmark 
compensation amount applies to contract costs incurred after January 1, 
2003, under covered contracts of both the defense and civilian 
procurement agencies as specified in Section 808 of Public Law 105-85.
    Questions concerning this memorandum may be addressed to Richard C. 
Loeb, Executive Secretary, Cost Accounting Standards Board, Office of 
Federal Procurement Policy, on (202) 395-3254.

    Angela B. Styles,
    Administrator.

[FR Doc. 03-10817 Filed 5-1-03; 8:45 am]

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