Effective January 1, 2006, the maximum executive compensation amount for FY2006 has been benchmarked at $546,689. It represents the median amount of compensation accrued for the top five highest paid executive over a recent twelve month period for publicly-traded companies with annual sales exceeding $50 million. The previous compensation cap for FY2005 was $473,318. The FY2006 cap represents a rather significant of 15.5% over the FY2005 cap which itself was a 9.3% increase over FY2004.

Compensation for personal services includes all remuneration paid currently or accrued, in whatever form and whether paid immediately or deferred, for services rendered by employees to the contractor during the applicable fiscal period. It includes, but is not limited to, salaries; wages; directors' and executive committee members' fees; bonuses (including stock bonuses); incentive awards; employee stock options, and stock appreciation rights; employee stock ownership plans; employee insurance; fringe benefits; contributions to pension, other postretirement benefits, annuity, and employee incentive compensation plans; and allowances for off-site pay, incentive pay, location allowances, hardship pay, severance pay, and cost of living differential.