Compensation review? How contractor salary cap may affect USAID partners

The U.S. Agency for International Development logo on a pallet of humanitarian supplies one of the organization's shipping and logistics facilities. A provision in the Bipartisan Budget Act of 2013 puts a new cap on U.S. government contractor pay. Will USAID contractors be affected by it? Photo by: Lance Cheung / U.S. Department of Agriculture / CC BY

How will U.S. Agency for International Development partners be affected by the new $487,000 cap on U.S. government contractor pay? Tempest in a teapot or not, a Washington, D.C.-based industry association is encouraging organizations to take a close look at their executive compensation plans.

“Governmentwide, USAID contractors will likely be affected by it,” Alan Chvotkin executive vice president and counsel for the Professional Services Council, told Devex, referring to the provision in the Bipartisan Budget Act 2013 passed at the end of 2013.

Though PSC won’t speculate how many people the provision might affect, “it will mostly be company executives,” and it could inhibit the ability of companies to attract top talent, he added.

According to a Washington insider who asked to remain anonymous, the cap is more of a “non issue” for development contractors, as it would only affect very few organizations. Instead, the challenge is more about instituting an arbitrary cap that isn’t addressing the government’s fundamental challenges to boost value for money.

This article is for Devex Members

For full access to the content of the article sign in or join Devex.

About the author

  • Rogers kelli cropped

    Kelli Rogers

    Kelli Rogers is a global development reporter for Devex. Based in Bangkok, she covers disaster and crisis response, innovation, women’s rights, and development trends throughout Asia. Prior to her current post, she covered leadership, careers, and the USAID implementer community from Washington, D.C. Previously, she reported on social and environmental issues from Nairobi, Kenya. Kelli holds a bachelor’s degree in journalism from the University of Missouri, and has since reported from more than 20 countries.

Join the Discussion