The Obama administration on Thursday called for Congress to slow the growth of executive pay for government contractors, arguing that current compensation levels have grown excessive.
The White House budget office unveiled a legislative proposal that would prohibit the government from reimbursing private firms for salaries that exceed the president’s federal earnings, which are $400,000 per year, except when specialized skills are needed.
The plan would only affect payments that are made retroactively through so-called cost-reimbursement contracts. Under such agreements, which are often used when final costs are hard to predict, the government promises to pay whatever costs a company incurs as it completes a project — like a blank check with certain limits. Continue reading “Obama administration urges Congress to cap contractor pay at president’s salary”