U.S Lawmakers Urges Cutting Military Contractors Pay

The U.S lawmakers have laid a provision seeking to control the amount corporate executives can make from military contracts in the fiscal 2014 defense spending bill.  

Republican U.S. Representative Howard McKeon of California, included the plan in his version of the fiscal 2014 defense authorization act, which will be reviewed by U.S Congress and expected to be finalized in the coming weeks.

McKeon's plan contains a provision that would prevent the largest defense contractors from including any compensation for their five top executives in their contracts.

It also would cap at $763,000 a year the amount that other employees could make in a contract, and tie any increase in that amount to growth in the economy which would have allowed it to rise to $900,000 next year.

"The real issue here is getting the cutoff point back to a sane point," a senior committee aide told U.S reporters before the plan was released.

The top executives at big defense companies, such as Lockheed Martin Corp, Boeing Co, Northrop Grumman Corp, and General Dynamics Co, can make $15 million to $32 million in total compensation.

The federal spending cuts includes reductions in defense spending and furloughs and pay freezes for government employees, fueling the push for controls on the amount that executives at private companies make under military contracts.

The White House also supports more control on contractors' pay. President Barack Obama's 2014 budget asks Congress to set a $400,000 annual limit on the amount of executive pay the government will reimburse federal contractors.