THE WHITE HOUSE
Office of the Press Secretary
STATEMENT BY THE PRESS SECRETARY
President Clinton issued an Executive Order today that directs government corporations to issue an annual public report on their compensation plans and what they pay in compensation and bonuses to senior executives.
The Executive Order also calls on government corporations not to pay bonuses exceeding the standard levels authorized by civil service law.
The Office of Management and Budget and the Department of Labor will review the compensation plans each year, taking into account their consistency with legal requirements, corporate mission, standards of federal management and efficiency, and equivalent private sector compensation plans and amounts paid to senior executives.
"This Executive Order reflects the President's commitment to improved management of the federal government," said Office of Management and Budget Director Alice M. Rivlin. "Government corporations are arms of the federal government and their employees should be answerable to the taxpayer. By making this information public, this action will ensure that government corporations are accountable and will encourage fair and reasonable compensation policies."
Under the Executive Order, government corporations that wish to award bonuses exceeding the authorized levels must wait until the OMB Director has had an opportunity to review their proposed compensation plans.