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M-00-09: Determination of Executive Compensation Benchmark Amount
Determination of Executive Compensation Benchmark Amount Pursuant to Section
808 of Pub. L. 105-85
This memorandum sets forth the "benchmark compensation amount" as required by Section 39
of the Office of Federal Procurement Policy (OFPP) Act (41 U S.C. 435), as amended. Under
Section 39, the "benchmark compensation amount" 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" The "benchmark compensation amount" established as directed by
Section 39 limits the allowability of compensation costs under government contracts. The
Benchmark compensation amount" does not limit the compensation that an executive may
otherwise receive.
Based on a review of commercially available surveys of executive compensation and after
consultation with the Director of the Defense Contract Audit Agency, I have determined
pursuant to the requirements of Section 39 that the benchmark compensation amount for
contractor fiscal year 2000 is $353,010. This benchmark compensation amount is to be used for
contractor fiscal year 2000, and subsequent contractor fiscal years, unless and until revised by
OFPP. This benchmark compensation amount applies to contract costs incurred after January 1,
2000, under covered contracts of both the defense and civilian procurement agencies as specified
in Section 808 of Pub. L. 105-85.
Questions concerning this memorandum may be addressed to Richard C. Loeb, Executive
Secretary, Cost Accounting Standards Board, OFPP, on (202) 395-3254.