A former executive for the Pentagon’s top defense contractor collected $1.66 million in salary, consulting fees and retirement pay from two top defense contractors last year before becoming the Republican chief of staff for the Senate Armed Services Committee in February.

The appointment is the second by a Republican member of either the House or Senate Armed Services committee to provoke criticism from independent groups that consider it a conflict of interest.

Ann Elise Sauer, who was appointed to her present job by Sen. John McCain, R-Ariz., worked for more than a decade as a vice president and lobbyist for Lockheed Martin before leaving in Jan. 2011, according to a financial disclosure she made to the Secretary of the Senate in April.

In 2011, she was paid a salary and bonus totaling $660,390, deferred compensation of $769,574, and $232,872 labeled as “retired pay” on the financial disclosure form. Lockheed is the Defense Department’s largest corporate contractor, earning $28.3 billion, or 61 percent, of its sales from the department in 2011, according to the company’s annual report.

Sauer then worked as a consultant and analyst for BAE Systems, earning $55,000 from the firm, according to her financial disclosure form. BAE is the Pentagon’s ninth largest contractor.

The Project on Government Oversight’s Ben Freeman said Thursday that Sauer’s appointment to the principal Senate committee tasked with overseeing all military spending and contracting creates a huge conflict of interest.

“$1.6 million — that gives a lot of reasons to remember your former employer,” said ...

Lockheed Martin has big business in Washington, with Defense Department contracts representing more than half of the company's $46.5 billion in net sales last year. And now, Lockheed has a former top lobbyist in a key position on Capitol Hill overseeing the company.

Former Lockheed vice president Ann Elise Sauer was hired by Sen. John McCain in February as the top Republican staffer on the Senate Armed Services Committee.

The revolving door swings regularly in Washington, but the size of the compensation package Sauer received from Lockheed when she left the company is notable. A financial disclosure form shows the defense giant gave Sauer $1.6 million in compensation around the time she took a buyout in January 2011.

At the moment, the stakes for Lockheed in Washington are even higher than usual, with the company leading the military contracting industry's charge to convince Congress to avoid a $492 billion, 9-year cut in military spending set to be triggered in January.

Lockheed CEO Robert Stevens was on the Hill this month warning that the company would have to lay off 10,000 employees if Congress does not make a deal. "Most tragically, we feel we will be unable to provide the equipment and support needed by our military forces," Stevens told the House.

As staff director for the minority on the Senate committee, Sauer has an important role in the battle over the possible military budget cuts. The committee regularly makes decisions ...