41 U.S.C. § 435 : US Code - Section 435: Levels of compensation of certain contractor personnel not allowable as costs under certain contracts

Search 41 U.S.C. § 435 : US Code - Section 435: Levels of compensation of certain contractor personnel not allowable as costs under certain contracts

(a) Determination required
For purposes of section 2324(e)(1)(P) of title 10 and section
256(e)(1)(P) of this title, the Administrator shall review
commercially available surveys of executive compensation and, on
the basis of the results of the review, determine a benchmark
compensation amount to apply for each fiscal year. In making
determinations under this subsection the Administrator shall
consult with the Director of the Defense Contract Audit Agency and
such other officials of executive agencies as the Administrator
considers appropriate.
(b) Benchmark compensation amount
The benchmark compensation amount applicable for a fiscal year is
the median amount of the compensation provided for all senior
executives of all benchmark corporations for the most recent year
for which data is available at the time the determination under
subsection (a) of this section is made.
(c) Definitions
In this section:
(1) The term "compensation", for a fiscal year, means the total
amount of wages, salary, bonuses and deferred compensation for
the fiscal year, whether paid, earned, or otherwise accruing, as
recorded in an employer's cost accounting records for the fiscal
year.
(2) The term "senior executives", with respect to a contractor,
means the five most highly compensated employees in management
positions at each home office and each segment of the contractor.
(3) The term "benchmark corporation", with respect to a fiscal
year, means a publicly-owned United States corporation that has
annual sales in excess of $50,000,000 for the fiscal year.
(4) The term "publicly-owned United States corporation" means a
corporation organized under the laws of a State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, or a possession of the United States the voting stock of
which is publicly traded.
(5) The term "fiscal year" means a fiscal year established by a
contractor for accounting purposes.