The average compensation package of the chief executive officer for one of the top five Pentagon contractors is roughly $21.5 million, according to an analysis by the Project on Government Oversight. Ben Freeman, an investigator for the government watchdog group, looked at the compensation packages of CEOs at Lockheed Martin, Boeing, General Dynamics, Northrup Grumman, and Raytheon reported in the firms’ Securities and Exchange Commission filings. The Defense Department — and therefore, taxpayers — pay for part of contractors’ executive compensation, which is billed as part of the indirect overhead rates on contracts. Some lawmakers are pushing measures to reduce how much contractors can receive for executive…
Browsing: contractor executive compensation
Taking an idea from the White House, New York Gov. Andrew Cuomo signed an executive order Wednesday limiting how much contractors can charge the state for executive compensation. The order limits the maximum contractors can charge New York state agencies for their executive’s’ compensation to Level I of the federal government’s executive pay schedule, about $200,000. “In certain instances providers of services that receive state funds or state-authorized payments have used such funds to pay for excessive administrative costs and outsized compensation for their senior executives, rather than devoting a greater proportion of such funds to providing direct care or services…