What is the official ID of this bill?
The official print number for this legislation is HR 428.
Ban on Executive Bonuses Before and During Bankruptcy Proceedings
New rules aim to prevent high-earning individuals and company insiders from receiving bonuses just before or during bankruptcy proceedings. This means individuals earning over $250,000 annually will not receive additional bonuses, protecting company assets for creditors and other stakeholders. These changes could enhance trust in the bankruptcy process and ensure a fairer distribution of funds.
Key points
Prohibits bonus payments to individuals earning over $250,000 annually within a 2-year period ending 1 year after bankruptcy filing.
The ban also applies to company insiders and individuals whose bonus would push their annual compensation above $250,000.
Exemptions include sales commissions and benefits from collective bargaining agreements.
The goal is to protect company assets during financial distress and prevent unfair practices.
The provisions take effect upon enactment and apply to bankruptcy cases commenced thereafter.
Status:
Expired
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