Security exec salaries capped at $612,196 for government contracts
OMB issued its latest calculation of what it calls its "maximum benchmark compensation," which will apply during contractors’ fiscal year 2008, in a Federal Register notice posted on March 25.
"The benchmark compensation amount applies equally to both defense and civilian procurement agencies," says the notice.
The benchmark of $312,196 may seem generous in some quarters, but it might appear rather stingy in the corner offices of Corporate America, where salary, bonuses and other incentives have pushed total compensation for some top execs to stratospheric levels.
Some leading suppliers to the Department of Homeland Security pay their CEOs far more than the just-announced benchmark. For example, Boeing pays its Chairman, President and CEO, W. James McNerney, $1.8 million in salary and nearly $19 million in total compensation; while Northrop Grumman rewards its Chairman and CEO, Ronald Sugar, with a salary of $1,525,000 and just over $3 million in total compensation.
As required by law, OMB calculates its benchmark based on the median -- which is the 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.
"The benchmark compensation amount applies to contract costs incurred after January 1, 2008, under covered contracts of both the defense and civilian procurement agencies," says OMB’s notice.
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