From the Weekly Standard:
On Thursday, the White House’s administrator for federal procurement policy, Joe Jordan, wrote on the White House blog about a legislative initiative that President Obama is sending to Congress next week “to stop excessive payments to Federal contractors.” Jordan continues:
“The proposal builds on previous Administration proposals and language included in the President’s Budget, and marks another important step in our ongoing effort to buy smarter and end wasteful, fiscally imprudent contract spending.
Under current law, contractors that are paid based on their incurred costs (which represents about one-third of current contract spending) may demand reimbursement for executive salaries, bonuses and other compensation up to the level of the Nation’s top private sector CEOs and other senior executives. This taxpayer reimbursement level has skyrocketed by more than 300 percent since the law was enacted in the mid-1990s.”
The president believes excessive compensation for executives is unnecessarily driving up costs for the government. What is excessive? Apparently, anything more than the president himself makes [emphasis added]:
“The Administration’s proposal calls on Congress to abolish the current formula and instead tie the reimbursement cap to the President’s salary and apply it across-the-board to all defense and civilian cost-reimbursement contracts. Tying the cap to the President’s salary provides a reasonable level of compensation for high value Federal contractors while ensuring taxpayers are not saddled with paying excessive compensation costs. “