Sec. 301. Executive compensation upon exit from bankruptcy
199 words·~1 min read·
/bill/113/s/2589/is/section-301A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 1129(a) of title 11, United States Code, is amended— in paragraph (4), by adding at the end the following: Except for compensation subject to review under paragraph (5), payments or other distributions under the plan to or for the benefit of insiders, senior executive officers, and any of the 20 next most highly compensated employees or consultants providing services to the debtor, shall not be approved except as part of a program of payments or distributions generally applicable to employees of the debtor, and only to the extent that the court determines that such payments are not excessive or disproportionate compared to distributions to the debtor’s nonmanagement workforce. ; and in paragraph (5)— in subparagraph (A)(ii), by striking and at the end; in subparagraph (B), by striking the period at the end and inserting ; and ; and by adding at the end the following: the compensation disclosed pursuant to subparagraph
(B)has been approved by, or is subject to the approval of, the court as reasonable when compared to individuals holding comparable positions at comparable companies in the same industry and not disproportionate in light of economic concessions by the debtor’s nonmanagement workforce during the case. .