Sec. 304. Limitation on executive compensation enhancements
455 words·~2 min read·
/bill/116/s/2155/is/section-304A 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 the matter preceding paragraph (1), by inserting and subject to section 363(b)(3), after Notwithstanding subsection (b), ; in paragraph (1), in the matter preceding subparagraph (A)— by inserting , a senior executive officer of the debtor, or any of the 20 next most highly compensated employees of the debtor, department or division managers of the debtor, or consultants providing services to the debtor (regardless of whether the executive officer, employee, manager, or consultant is an insider) after insider of the debtor ; by inserting or for the payment of performance or incentive compensation, a bonus of any kind, or any other financial return 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 ; in paragraph (2), in the matter preceding subparagraph (A), by inserting , a senior executive officer of the debtor, or any of the 20 next most highly compensated employees of the debtor, department or division managers of the debtor, or consultants providing services to the debtor (regardless of whether the executive officer, employee, manager, or consultant is an insider) after an insider of the debtor ; and by striking paragraph
(3)and inserting the following: any other transfer or obligation to or for the benefit of an insider of the debtor, a senior executive officer of the debtor, or any of the 20 next most highly compensated employees of the debtor, department or division managers of the debtor, or consultants providing services to the debtor (regardless of whether the executive officer, employee, manager, or consultant is an insider), absent a finding by the court, based upon clear and convincing evidence in the record, and without deference to a request by the debtor for such payment, that— because of the essential and particularized nature of the services provided by the insider, executive officer, employee, manager, or consultant, the transfer or obligation is essential to— the survival of the business of the debtor; or in a case in which some or all of the assets of the debtor are liquidated, the orderly liquidation of the assets; in the case of a transfer or obligation under an incentive program, the transfer or obligation is part of a workforce incentive program generally applicable to the nonmanagement workforce of the debtor; and the cost of the transfer or obligation— is reasonable; is not excessive in the context of the financial circumstances of the debtor; and is not disproportionate in light of any economic loss incurred by the nonmanagement workforce of the debtor during the case. .