Page:United States Statutes at Large Volume 111 Part 2.djvu/757

 PUBLIC LAW 105-85—NOV. 18, 1997 111 STAT. 1837 "(1) The term 'compensation', for a fiscal year, means the total Eimount 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 executive', with respect to a contractor, means— "(A) the chief executive officer of the contractor or any individual acting in a similar capacity for the contractor; "(B) the four most highly compensated employees in management positions of the contractor other than the chief executive officer; and "(C) in the case of a contractor that has components which report directly to the contractor's headquarters, the five most highly compensated individuals in management positions at each such component. "(3) The term 'fiscal year' means a fiscal year established by a contractor for accounting purposes.". (c) LEVELS OF COMPENSATION NOT ALLOWABLE.— (1) The Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding at the end the following: "SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR 41 USC 435. PERSONNEL NOT ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS. "(a) DETERMINATION REQUIRED. —For purposes of section 2324(e)(l)(P) of title 10, United States Code, and section 306(e)(l)(P) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256(e)(l)(P)), 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 sind such other officials of executive agencies as the Administrator considers appropriate. "(b) BENCHMARK COMPENSATION AMOUNT. —The benchmark compensation amoiuit 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) 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 executive', with respect to a corporation, means— "(A) the chief executive officer of the corporation or any individual acting in a similar capacity for the corporation; "(B) the four most highly compensated employees in management positions of the corporation other than the chief executive officer; and

�