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Jan 19, 2012



Why should any executive be compensated directly out of a government contract? Their salary should come out of overhead unless they are charging directly to the contract, and even then they should be compensated according to the type of job they are doing. If the executive is providing business management support, then they should be paid at that rate. If they are providing engineering, they get that rate. Many government contractors, such as the one I work for, charge the government over $200/hr for engineering labor. That's more than $400,000 per year, of which engineers themselves only see a small fraction.

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