Compensation Practices of Government Corporations

1995-10-10Executive Order 12976
Signed by: William J. Clinton
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Headline: 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: government pay, executive compensation, federal management, transparency, government corporations

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.

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