2013 Interim Executive Compensation Rule Finalized

On May 30, 2014, the government adopted as final, without change, the interim rule published on June 26, 2013, that expanded the Office of Federal Procurement Policy cap on executive compensation to all contractor personnel working on DoD, NASA, and Coast Guard contracts, pursuant to section 803 of the National Defense Authorization Act for FY12. The final rule rejected comments contesting the retroactive application of the expanded cap and made clear that it applies to compensation costs incurred starting on January 1, 2012, for contract awards on or after December 31, 2011.