As federal belts tighten, contractor CEOs enjoy million-dollar raises

As federal belts tighten, contractor CEOs enjoy million-dollar raises

Apr. 23, 2013 – 09:13PM   |

By JIM McELHATTON   |

On the same day in March that Lockheed Martin warned that the sequester could lead to thousands of employee furloughs and layoffs, the nation’s largest federal contractor disclosed that it had just boosted the compensation of its former CEO by more than $2 million.

Former Lockheed Martin CEO Robert Stevens testifies before the House Armed Services Committee in 2012.Former Lockheed CEO Robert Stevens, who retired as CEO on Jan. 1 but remains chairman, saw his overall compensation rise from $23.4 million in 2011 to $27.5 million in 2012, according to Securities and Exchange Commission (SEC) forms.

The disclosure shows how even with a looming sequester, budget standoffs and defense cutbacks, federal belt-tightening hasn’t yet hit the wallets of top executives for some of the nation’s biggest federal contractors.

“I don’t think you’re going to start seeing that until companies’ numbers are going flat and negative,” said Paul Dorf, managing director of Compensation Resources Inc. Continue reading “As federal belts tighten, contractor CEOs enjoy million-dollar raises”

POGO Celebrates Sunshine Week with Expanded Misconduct Database

POGO Project On Government Oversight - Blog

POGO Celebrates Sunshine Week with Expanded Misconduct Database

March 14, 2013

Telecom giant Verizon Communications and health insurer Highmark are among a dozen new entities the Project On Government Oversight added this week to its Federal Contractor Misconduct Database (FCMD).

POGO took the fiscal year 2011 data reported on the Federal Procurement Data System and came up with a new ranking of the top 100 federal contractors, which now includes Verizon (#69), Highmark (#93), and ten other of the largest suppliers of goods and services to the federal government. The new top 100 received 55 percent of the $537 billion in federal contracts awarded in FY 2011. Collectively, they have racked up 932 misconduct instances and $41 billion in monetary penalties since 1995. Continue reading “POGO Celebrates Sunshine Week with Expanded Misconduct Database”

As a Federal Employee and Taxpayer – I’m Tired of Paying for Your HIGH Salaries!

Office of Management and Budget

Office of Federal Procurement Policy Cost Accounting Standards Board Executive Compensation, Benchmark Maximum Allowable Amount

For 2011, the allowable costs were set at $763,029!

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 is implemented at FAR 31.205-6(p). Continue reading “As a Federal Employee and Taxpayer – I’m Tired of Paying for Your HIGH Salaries!”