,,ii #aae? ,,congress #a/ ,session ,s4 #ahdc ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #ai1 #bjag,mrs4 ,gillibr& 7= h]self & ,mr4 ,durb97 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to d5y a d$uction = excessive comp5sation ( any employee ( an employ]1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/op ,,ceo ,excessive ,pay ,act4 #b4 ,d5ial ( d$uction = paym5ts ( excessive comp5sation 7a7 ,9 g5]al ,section #afb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] subsection 7h7 ! foll[+ new subsections3 7i7 ,excessive comp5sation 7#a7 ,9 g5]al ,no d$uction %all be all[$ "u ?is *apt] = any excessive comp5sation = any employee ( ! taxpay]4 7#b7 ,excessive comp5sation ,= purposes ( ?is subsection1 ! t]m excessive comp5sation means1 ) respect to any employee1 ! am\nt by :i* ! comp5sation = s]vices p]=m$ by su* employee dur+ ! taxable ye> exce$s ! less] (-- 7,a7 ! m$ian ( ! comp5sation paid = s]vices p]=m$ by all employees ( ! taxpay] dur+ ! taxable ye>1 multipli$ by #be1 or 7,b7 #a1jjj1jjj4 7#c7 ,o!r def9itions & special rules ,= purposes ( ?is subsection-- 7,a7 ,comp5sation ,! t]m comp5sation includes wages1 sal>y1 fees1 commissions1 fr+e b5efits1 def]r$ comp5sation1 retirem5t contributions1 options1 bonuses1 prop]ty1 & any o!r =m ( remun]ation t ! ,secret>y det]m9es is appropriate4 7,b7 ,employ] ,all p]sons treat$ z a s+le employ] "u subsection 7a7 or 7b7 ( section #eb or subsection 7m7 or 7o7 ( section #dad %all be treat$ z a s+le taxpay] = purposes ( ?is subsection4 7,c7 ,employee ,! t]m employee includes full-"t1 "p-"t1 & seasonal employees4 7#d7 ,report+ ,ea* employ] :i* provides any excessive comp5sation to any employee dur+ a taxable ye> %all file a report ) ! ,secret>y ) respect to su* taxable ye> includ+-- 7,a7 ! am\nt ( comp5sation ( ! employee ( ! taxpay] receiv+ ! l[e/ am\nt ( comp5sation dur+ su* taxable ye>1 7,b7 ! am\nt ( comp5sation ( ! employee ( ! taxpay] receiv+ ! highe/ am\nt ( comp5sation dur+ su* taxable ye>1 7,c7 ! m$ian comp5sation ( all employees ( ! taxpay] dur+ su* taxable ye>1 7,d7 ! numb] ( employees ( ! taxpay] :o are receiv+ excessive comp5sation dur+ su* taxable ye>1 & 7,e7 ! am\nt ( comp5sation ( ea* employee describ$ 9 subp>agraph 7,d7 dur+ su* taxable ye>4 ,su* report %all be fil$ at su* "t & 9 su* mann] z ! ,secret>y may require4 7j7 ,f9es relat+ to executive comp5sation ,no d$uction %all be all[$ "u ?is *apt] = any f9e paid to ! ,securities & ,ex*ange ,commission "u section #af7;h77#d7 ( ! ,securities ,ex*ange ,act ( #aicd4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #c4 ,am5dm5t to ! ,securities ,ex*ange ,act ( #aicd 7a7 ,9 g5]al ,section #af ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghp7 is am5d$ by add+ at ! end ! foll[+3 7h7 ,%>ehold] approval ( executive comp5sation 7#a7 ,calculation ( comp5sation ,= purposes ( ?is subsection1 ! t]m comp5sation includes wages1 sal>y1 fees1 commissions1 fr+e b5efits1 def]r$ comp5sation1 retirem5t contributions1 options1 bonuses1 prop]ty1 & any o!r =m ( remun]ation t ! ,commission1 9 consultation ) ! ,secret>y ( ! ,treasury1 det]m9es is appropriate4 7#b7 ,limitation 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! comp5sation paid to an employee ( an issu] 9 any taxable ye> may n exce$ ! less] (-- 7i7 #a1jjj1jjj2 or 7ii7 an am\nt t is #be times ! m$ian am\nt ( comp5sation paid to all employees ( t issu] dur+ t taxable ye>4 7,b7 ,exception ,an issu] may pay comp5sation describ$ 9 subp>agraph 7,a7 to an employee ( ! issu] if1 n m ?an #ah mon?s be=e ! la/ day ( ! taxable ye> 9 :i* ! comp5sation is paid1 n less ?an #ej p]c5t ( ! %>ehold]s ( ! issu] vote to approve ! comp5sation ?r\gh a proxy or cons5t or au?orization = an annual or o!r meet+ ( ! %>ehold]s4 7#c7 ,proxy cont5ts ,proxy mat]ials = a %>ehold] vote describ$ 9 p>agraph 7#b77;,b7 %all include1 ) respect to ! mo/ rec5t taxable ye> end+ be=e ! date on :i* ! vote takes place-- 7,a7 ! am\nt ( comp5sation paid to ! l[e/ paid employee ( ! issu]2 7,b7 ! am\nt ( comp5sation paid to ! highe/ paid employee ( ! issu]2 7,c7 ! m$ian am\nt ( comp5sation paid to all employees ( ! issu]2 7,d7 ! numb] ( employees ( ! issu] :o are paid comp5sation 9 an am\nt t is m ?an #be times ! am\nt describ$ 9 subp>agraph 7,c72 & 7,e7 ! total am\nt ( comp5sation paid to ! employees describ$ 9 subp>agraph 7,d74 7#d7 ,money p5alty 7,a7 ,9 g5]al ,! ,commission may impose a civil p5alty aga9/ an issu] if-- 7i7 ! issu]1 9 a taxable ye>1 pays comp5sation to an employee ( ! issu] 9 an am\nt t exce$s ! less] (-- 7,i7 #a1jjj1jjj2 or 7,,ii7 #be times ! m$ian am\nt ( comp5sation paid to all employees ( t issu] dur+ t taxable ye>2 & 7ii7 7,i7 ! issu] does n conduct a vote describ$ 9 p>agraph 7#b77;,b7 ) respect to ! comp5sation describ$ 9 clause 7i72 or 7,,ii7 less ?an #ej p]c5t ( ! %>ehold]s ( ! issu] vote to approve ! comp5sation describ$ 9 clause 7i71 9 contrav5tion ( ! requirem5t "u p>agraph 7#b77;,b74 7,b7 ,am\nt ( p5alty ,! am\nt ( ! p5alty impos$ "u subp>agraph 7,a7 %all be equal to ! excess (-- 7i7 ! comp5sation describ$ 9 subp>agraph 7,a77i72 ov] 7ii7 ! less] (-- 7,i7 #a1jjj1jjj2 or 7,,ii7 ! am\nt t is #be times ! m$ian am\nt ( comp5sation paid to all employees ( ! issu] dur+ ! taxable ye> 9 :i* t comp5sation is paid to t employee4 4 7b7 ,deadl9e = rulemak+ ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all issue any f9al rules & regulations requir$ to c>ry out section #af7;h7 ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by subsection 7a74