Sec. 301. Executive compensation upon exit from bankruptcy
295 words·~1 min read·
/bill/118/s/5443/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, as amended by sections 104 and 206 of this Act, is amended— in paragraph (4)— by adding
(A)after
(4); in subparagraph (A), as so designated, by striking Any payment and inserting Subject to subparagraph (B), any payment ; and by adding at the end the following: Subject to clause (ii), the plan does not provide for payments or other distributions to, or for the benefit of, an insider of the debtor, a senior executive officer of the debtor, any of the 20 highest compensated employees of the debtor who are not insiders or senior executive officers, any department or division manager of the debtor, or any consultant providing services to the debtor, unless— the payments or other distributions are part of a program that is generally applicable to all full-time employees of the debtor; and the payments or distributions do not exceed the compensation limits established in section 503(c)(1) in comparison to the nonmanagement workforce of the debtor. The requirement under clause
(i)shall not apply to the compensation described in paragraph (5)(C). ; 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 under 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 as the debtor; not more than the amount corresponding to the 50th percentile of the compensation of the individuals described in clause (i); and not excessive or disproportionate in light of economic losses of the nonmanagement workforce of the debtor. .