Compensation Practices of Government Corporations
Limits Bonuses and Requires Reporting for Government Corporations
What it does
Government corporations must submit senior executive pay details to the Office of Management and Budget and refrain from approving larger bonuses until it reviews them.
Real-world impact
- Limits large bonuses for senior executives at government corporations.
- Requires public release of submitted senior executive compensation information.
- May delay approval of bonuses while the Office of Management and Budget reviews submissions.
Topics
Summary
This order restricts bonuses for government corporations to amounts allowed under federal pay law and requires corporations to submit detailed senior executive compensation information to the Office of Management and Budget for review before approving larger bonuses. The Office of Management and Budget will provide instructions on what information to submit and will review submissions with the Department of Labor.
The order covers mixed-ownership and wholly owned government corporations, requires public release of the submitted information, and aims to improve management and transparency without creating new legal rights.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”