Fed's Limit Executive Compensastion for Contractors
Even with all of the limits placed on contractors' compensastion, executive in these companies can be be paid close to $700,000.
The allowability of the compensation costs for the senior executives of Government contractors is capped by statute (10 U.S.C. 2324(e)(1)(p) and 41 U.S.C. 256(e)(1)(p)) at a benchmark executive compensation amount. The benchmark amount does not limit the amount of compensation that an executive may otherwise receive. However, the compensation costs in excess of the benchmark amount are unallowable costs for Government contract purposes. While the benchmark executive compensation amount is the maximum allowable amount of compensation costs for certain executives of Government contractors, the benchmark amount as applied to a particular executive is not necessarily a safe harbor. Without regard to the benchmark compensation amount, the allowable compensation costs for each affected executive are still subject to the Federal Acquisition Regulation and the Cost Accounting Standards as applicable and appropriate to the circumstances, e.g., reasonableness and allocability. The Executive Compensation Cap was implemented in FAR 31.205-6(p).
The Janco Associates, Inc. salary survey draws on data collected throughout the year by extensive internet-based and completed survey forms sent to businesses throughout the United States and Canada. Over 300 companies participate in the survey.
The 2012 IT Salary Survey is good news for IT Professionals. The survey shows that hiring is picking up in some sectors of the IT job market, salaries have stopped falling, and for selected positions there has been an increase in compensation - especially for CIOs. Even though many fear a second dip in the economy, CIOs in larger enterprises have been give the ‘yellow light’ to look ahead and fill positions that were left unfilled last year., The same is not the case for mid-sized companies. They are much more cautious and concerned that the recovery will not be strong enough to support increased IT spending. In follow-up interviews of the participants we found that CIOs are starting their 2011 planning processes with the assumptions that the economy will improve in the first part of next year. If that holds true them hiring and compensation should pick up.
