Accountability for Utility Executives Act

Bill: 116-s-2844
Sponsor: full_name: Sen. Harris, Kamala D. [D-CA]
Introduced: 2019-11-13
Policy area: Finance and Financial Sector
Subjects: Bankruptcy

Corporate finance and management

Electric power generation and transmission

Public utilities and utility rates

Wages and earnings

Water use and supply
Latest action: action_date: 2019-11-13
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-11-13
action_desc: Introduced in Senate
text: <p><b>Accountability for Utility Executives Act </b></p> <p>This bill prohibits a publicly traded utility company undergoing bankruptcy proceedings from paying bonuses or any <i>golden parachute compensation</i> to company executives. The bill defines <i>golden parachute compensation</i> as compensation based on or related to the acquisition, merger, consolidation, sale, or other disposition of the assets of the company.</p>

tv_txt: II 116th CONGRESS 1st Session S. 2844 IN THE SENATE OF THE UNITED STATES November 13, 2019 Mr. Schumer (for Ms. Harris ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide that certain executives of publicly traded utility companies may not receive bonuses or severance payments, and for other purposes.

1. Short title This Act may be cited as the Accountability for Utility Executives Act . 2. Prohibitions on certain bonuses and severance payments (a) Definitions In this section— (1) the term bankruptcy proceedings means a case commenced under title 11, United States Code; (2) the term C-suite executive means, with respect to a covered company— (A) the chief executive officer of the covered company; (B) the chief financial officer of the covered company; (C) the chief operating officer of the covered company; (D) the chief information officer of the covered company; and (E) the equivalent of an official described in any of subparagraphs (A) through (D); (3) the term covered company means an issuer— (A) that— (i) is a debtor in bankruptcy proceedings; and (ii) (I) is an owner or operator of— (aa) a public water system; or (bb) a treatment works; or (II) is an electric utility; and (B) the securities of which are traded on a national securities exchange; (4) the term electric utility has the meaning given the term in section 3 of the Federal Power Act (16 U.S.C. 796); (5) the terms exchange , issuer , and security have the meanings given the terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)); (6) the term golden parachute compensation means, with respect to a covered company, any type of compensation (whether present, deferred, or contingent) that is based on or otherwise relates to the acquisition, merger, consolidation, sale, or other disposition of all or substantially all of the assets of the covered company; (7) the term national securities exchange means an exchange that is registered under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f); (8) the term public water system has the meaning given the term in section 1401 of the Safe Drinking Water Act (42 U.S.C. 300f); and (9) the term treatment works has the meaning given the term in section 212 of the Federal Water Pollution Control Act (33 U.S.C. 1292). (b) Prohibition (1) In general A covered company may not— (A) pay a bonus to a C-suite executive of the covered company; or (B) otherwise provide an individual described in subparagraph (A) with any golden parachute compensation. (2) Taxation If a covered company pays a bonus or otherwise provides compensation in violation of paragraph (1), that bonus or compensation, as applicable, shall be treated for purposes of the Internal Revenue Code of 1986 as if it were an excess parachute payment under section 280G of such Code.