I’d like to respond to the news stories out lately concerning the Director’s salary at the Los Alamos National Laboratory. Following our press release Wednesday, the Lab released their reply. It was reported by both the Albuquerque Journal North and the LAMonitor.
LANL Says Pension Boosted Director’s Compensation By Mark Oswald / Albuquerque Journal on Fri, Apr 20, 2012
Nuke Watch assails lab salary increase By John Severance, LA Monitor, Thursday, April 19, 2012 at 12:32 pm (Updated: April 20, 9:08 am)
From the monitor article –
“According to its computations, Charlie McMillan, the LANL director, had a salary of $1,081,059 in 2011. In 2009, the salary was $800,348 and in 2005, the year before the management of the lab was awarded to Los Alamos National Security, LLC, a corporation including the University of California, Bechtel Corporation, URS and B&W, the salary was $348,000.”
BTW, it’s not our “computations.” The compensation levels we quote come from federal reporting on economic stimulus funding.
In response, the Lab states, “The majority of the figure reported under DOE stimulus funding guidelines is an increase in pension value.” Can anyone explain what this means? Our economic experts are at a loss. Until I am straightened out, which I eagerly await, the statement will mean to me that the increases of the Director/President’s annual compensation are mostly due to increased pension contributions.
Whatever it is, it is still annual compensation.
The Lab response continues – “Also included are salary, life insurance, health benefits, and other total compensation.” I repeat, whatever the “increase in pension value” is, it is still annual compensation.
The Lab response continues – “The portion of the director’s annual salary reimbursable by the government is about 35 percent of the reported figure and is comparable to previous director salaries, adjusted for inflation.” That may be true, but the remaining 65% of the $1M annually going to the LANL Director/LANS President is coming from the contractor Los Alamos National Security, LLC (LANS), of which he is president of the executive committee of the board of directors. The statement continues – “Any amount above the federal maximum comes from LANS performance fees and is not reimbursable by the government.” But the LANS performance fees are paid by the federal government, so ultimately it is still the taxpayer that is paying the LANL’s Director’s total salary.
It is still annual compensation paid for by the taxpayers.
Before the LANL management contract was privatized and became for-profit in June 2006 the LANL Directors were getting just that salary directly reimbursable by the government. Now they get that plus the larger LANS amount on top of it.