Compensation Practices of Government Corporations
Signed October 5, 1995·William J. Clinton·60 FR 52829
Source
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Plain-language summary
Sets rules for federal government corporations on executive pay and bonuses. States that these corporations generally should not pay bonuses beyond limits set in existing federal law. Requires wholly owned government corporations, before approving any bonus exceeding statutory limits, to submit relevant information to the Director of the Office of Management and Budget (OMB) and wait for OMB's review. Also requires mixed-ownership and wholly owned corporations listed under title 31 of the U.S. Code to report information on senior executive compensation plans, salaries, bonuses, and supporting justifications to OMB, in a form and timing OMB specifies. Directs OMB, in consultation with the Department of Labor, to review this information against statutory requirements, corporate mission, federal management standards, and private-sector pay practices. Requires corporations to publicly disclose the compensation information submitted. States that the order is meant only to improve internal executive branch management and creates no enforceable legal rights for outside parties.
Not written or reviewed by a person. Read the full order below for anything you intend to rely on.
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Claimed authority
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, and sections 1105, 1108, and 1111 of title 31, United States Code, it is hereby ordered
Quoted from the order as written. Many orders cite nothing more specific than “the Constitution and the laws”; this reproduces what the order claims, not an assessment of whether it holds.
The order, in full
Executive Order 12976 of October 5, 1995
Compensation Practices of Government Corporations
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including section 301 of title 3, United
States Code, and sections 1105, 1108, and 1111 of title
31, United States Code, it is hereby ordered as
follows:
Section 1. Statement of Presidential Principles.
Government corporations subject to this order should
not pay bonuses in excess of those authorized by
sections 4501 through 4507 of title 5, United States
Code, except as otherwise specifically provided by law.
Sec. 2. Administration Review. (a) Before taking action
to approve any bonus in excess of those authorized in
section 4502 of title 5, United States Code, each
corporation subject to this section (as provided in
section 6 of this order) shall submit information to
the Director of the Office of Management and Budget
(OMB) relating to such bonuses as provided in
subsection (b). Such corporation shall refrain from
approving any such bonus until the Director of OMB has
had an opportunity to review the information provided
by the corporation.
(b) The Director of OMB shall issue instructions to
the corporations subject to this section specifying
when information is to be submitted, and the content
and form of such information.
Sec. 3. Information Reporting Requirements. (a)
Government corporations subject to this order will
provide information to the Director of OMB relating to
the compensation practices for senior executives of
such corporations as provided in subsection (c).
(b) Information submitted shall include the
following with respect to senior executives of each
corporation subject to this section:
(1) the compensation plan, procedures, and
structure of such corporation;
(2) base salary levels, annual bonuses, and other
compensation; and
(3) information supporting the senior executive
compensation plan and levels.
(c) The Director of OMB shall issue instructions to
the corporations subject to this section specifying
when information is to be submitted, and the content
and form of such information.
Sec. 4. Review. (a) OMB, in consultation with the
Department of Labor, will review the information
submitted pursuant to section 3, taking into
consideration:
(1) consistency with statutory requirements;
(2) consistency with corporate mission;
(3) standards of Federal management and
efficiency; and
(4) equivalent private sector compensation
practices.
Sec. 5. Public Dissemination Requirement. Government
corporations subject to this order shall make available
through public dissemination the information submitted
pursuant to section 3 of this order.
Sec. 6. Coverage. This order will apply to all mixed-
ownership and wholly owned corporations listed in
section 9101 (2) and (3) of title 31, United States
Code. Section 2 shall apply only to wholly owned
corporations except such corporations that have
specific authority to approve bonuses in excess of
those authorized under sections 4501 through 4507 of
title 5, United States Code.
Sec. 7. Administration. All corporations subject to
this order shall provide any information in the manner
and form, and at the time, requested pursuant to this
order by the Director of OMB.
Sec. 8. This order is intended only to improve the
internal management of the executive branch and is not
intended to create any right or benefit, substantive or
procedural, enforceable at law by a party against the
United States, its agencies, its officers, or any other
person.
(Presidential Sig.)
THE WHITE HOUSE,
October 5, 1995.Reproduced from the Federal Register plain-text record, signed October 5, 1995. Typesetting artifacts are removed; no wording is changed.