U.S. Rep. Cheri Bustos (D-Moline) is joining with a bipartisan group of legislators to ban executives from receiving bonuses after their companies declare bankruptcy.
Bustos’ bill, the No Bonuses in Bankruptcy Act of 2019, would bar companies from paying bonuses to employees making more than $250,000 a year while they are going through the bankruptcy process. The bill would also ban employee relatives, board members, general partners or insiders at affiliate corporations from receiving bonuses while the bankruptcy case is ongoing.
“Wealthy corporate executives and insiders shouldn’t be able to cash out during a bankruptcy while workers are laid off and struggle to pay the bills,” Bustos said. “I’d like to thank the folks who wrote to me about this issue – because it absolutely isn’t right. The bipartisan bill I introduced today would get rid of bonuses for corporate executives who’ve run their companies into the ground – and give a voice to the workers who put in the hard labor every day and truly power our communities.”
The bill was inspired by high-profile cases, such as Toys R Us and RadioShack.