The new benchmark amount for determining allowable contractor executive compensation costs incurred after January 1, 2000 is $353,010.  The cap applies to covered contracts by defense and civilian agencies and is a result of the government’s approach of setting a benchmark compensation amount each year based on the median amount of compensation  for senior executives of publicly-owned corporations with annual sales in excess of $50 million.  The “compensation” subject to the cap includes total amount of wages, salary, bonuses, deferred compensation and employer contributions to defined-contribution pension plans of the contractor’s fiscal year (whether paid, earned or otherwise accrued).  The cap for FY 1998 was $340,650 and for FY 1999 was $342,986.

{TAG_FORM_TITLE}