Sec. 302. Limitations on executive compensation enhancements
261 words·~1 min read·
/bill/113/s/2589/is/section-302A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 503(c) of title 11, United States Code, is amended— in paragraph (1), in the matter preceding subparagraph (A)— by inserting , a senior executive officer, or any of the 20 next most highly compensated employees or consultants after an insider ; by inserting or for the payment of performance or incentive compensation, or a bonus of any kind, or other financial returns designed to replace or enhance incentive, stock, or other compensation in effect before the date of the commencement of the case, after remain with the debtor’s business, ; and by inserting clear and convincing before evidence in the record ; and by amending paragraph
(3)to read as follows: other transfers or obligations, to or for the benefit of insiders, senior executive officers, managers, or consultants providing services to the debtor, in the absence of a finding by the court, based upon clear and convincing evidence, and without deference to the debtor’s request for such payments, that such transfers or obligations are essential to the survival of the debtor’s business or (in the case of a liquidation of some or all of the debtor’s assets) essential to the orderly liquidation and maximization of value of the assets of the debtor, in either case, because of the essential nature of the services provided, and then only to the extent that the court finds such transfers or obligations are reasonable 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. .