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Code · BILL · 118th Congress · S. 5443 (Introduced in Senate) — To amend title 11, United States Code, to improve protections for employees and retirees in business bankruptcies. · Sec. 302

Sec. 302. Limitations on executive compensation enhancements

375 words·~2 min read·/bill/118/s/5443/is/section-302

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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 subsection
(b); in paragraph (1)— in the matter preceding subparagraph (A)— by inserting , a senior executive officer of the debtor, any 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 before for the purpose ; and 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, ; by amending subparagraph
(A)to read as follows: the transfer or obligation is part of a program that is generally applicable to all full-time employees of the debtor; and ; by striking subparagraph (B); by redesignating subparagraph
(C)as subparagraph (B); in subparagraph (B), as so redesignated— in clause (i), by striking 10 and inserting 2 ; and in clause (ii)— by striking 25 and inserting 10 ; and by striking insider and inserting person ; in paragraph (2)— in the matter preceding subparagraph (A), by inserting , 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, before , unless ; and in subparagraph (B), by striking 10 and inserting 2 ; and by amending paragraph
(3)to read as follows: other transfers or obligations to, or for the benefit of, an insider of the debtor, a senior executive officer of the debtor, 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 that are outside of the ordinary course of business, except as part of a plan of reorganization and subject to the approval of the court under paragraphs
(4)and
(5)of section 1129(a). .
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