2015 National Compensation Matrix
The 2015 National Compensation Matrix (NCM) is now available for use!
The 2015 NCM is applicable for evaluation of executive compensation incurred during 2014. The NCM is updated in odd-numbered years by applying an escalation factor to the previous year’s data. In even-numbered years, it is updated by compiling the results of new compensation survey data.
The escalation factor applied is based on a published survey which has been used consistently since the NCM’s inception in 2012. For the 2015 NCM, the escalation factor was 3.0%.
One other item you will note that might affect your firm or your clients is the new statutory compensation cap of $487,000 that was implemented through the Bipartisan Budget Act of 2013. This cap is applicable to contracts executed on or after June 24, 2014, and could cause some firms to have two overhead rates, depending on the execution date of the contract. The NCM instructions and Q&A’s have been updated to reflect this change.
If you have any questions on how the NCM is applied, please contact us or refer to our recorded webinar Analyzing Compensation – A Step-by-Step Approach Using the National Compensation Matrix.
Click here to access the 2015 NCM