---
kind: "section"
citation: "10 U.S.C. § 1587a"
title: "10"
title_heading: "Armed Forces"
number: "1587a"
heading: "Employees of nonappropriated fund instrumentalities: senior executive pay levels"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/1587a"
units:
  - "Subtitle A — General Military Law"
  - "Part II — Personnel"
  - "Chapter 81 — Civilian Employees"
---

# §1587a. Employees of nonappropriated fund instrumentalities: senior executive pay levels

- (a) **Authority.—** To achieve the objective stated in [subsection (b)](#b), the [Secretary](/usc/10/4951.md?p=3) of Defense may regulate the amount of total compensation that is provided for senior executives of nonappropriated fund instrumentalities who, for the fixing of [pay](/usc/10/101.md?p=a-15) by administrative action, are under the jurisdiction of the [Secretary](/usc/10/4951.md?p=3) of Defense or the [Secretary](/usc/10/4951.md?p=3) of a [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6).
- (b) **Pay Parity.—** The objective of an action taken with respect to the compensation of senior executives under [subsection (a)](#a) is to provide for parity between the total compensation provided for such senior executives and total compensation that is provided for [Department](/usc/10/101.md?p=a-6) of Defense employees in Senior Executive Service positions or other senior executive positions.
- (c) **Standards of Comparability.—** Subject to [subsection (d)](#d), the [Secretary](/usc/10/4951.md?p=3) of Defense shall prescribe the [standards](/usc/10/3011.md?p=3) of comparison that are to apply in the making of the determinations necessary to achieve the objective stated in [subsection (b)](#b).
- (d) **Establishment of Pay Rates.—** The [Secretary](/usc/10/4951.md?p=3) of Defense shall apply subsections (a) and (b) of [section 5382 of title 5](/usc/5/5382.md) in the regulation of compensation under this section.
- (e) **Relationship to Pay Limitation.—** The [Secretary](/usc/10/4951.md?p=3) of Defense may exercise the authority provided in [subsection (a)](#a) without regard to [section 5373 of title 5](/usc/5/5373.md).
- (f) **Definitions.—** In this section:
  - (1) The term “compensation” [includes](/usc/10/101.md?p=g-4) [rate](/usc/10/101.md?p=b-9) of basic [pay](/usc/10/101.md?p=a-15).
  - (2) The term “Senior Executive Service position” has the meaning given such term in [section 3132 of title 5](/usc/5/3132.md).

## Source credit

(Added Pub. L. 108–375, div. A, title XI, § 1104(a), Oct. 28, 2004, 118 Stat. 2073.)