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NIH Lowers Executive Salary Cap by $20,000

January 17, 2012 / Ed Jameson / Blog Posts
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Bad news for NIH Principal Investigators and Executives.  Due to the passage of H.R. 2055 on 12/23/2011, NIH has reduced their Salary Cap from Executive Level 1 ($199,700) to Executive Level 2 ($179,700).  Final Guidance on the Salary Cap implementation is likely to be released sometime this week.

It is expected that NIH will require this cap for FY2012 funds awarded on or after 12/24/2011, but will be revealed in full detail once NIH’s guidance is finalized.

All new proposals going forward must utilize the new Executive Level 2, $179,700 cap.  This will have a major effect on University NIH Grants, R01′s, and SBIR/STTR and the direct salary received from these awards.

Information to come, but in the meanwhile, you may read the details via Page 76, Sec 203 of the following document released in conjunction from the Department of Labor & Department of Health and Human Services

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Ed Jameson, CPA, Managing Partner

I’ve been in practice for over 40 years helping our small business clients procure, manage, and survive audits on more than $6 billion in federal government contract and grant funding. We’ve been featured presenters and panel moderators at Tech Connect’s National SBIR/STTR conferences since 2010, and I’ve presented at the DOD’s Mentor Protégé Summit and present regularly for several state and local organizations.