Title 15 — Commerce and TradeRelease 119-73

§9043 Limitation on certain employee compensation

Title 15 › Chapter CHAPTER 116— - CORONAVIRUS ECONOMIC STABILIZATION (CARES ACT) › Subchapter SUBCHAPTER III— - ECONOMIC STABILIZATION AND ASSISTANCE TO SEVERELY DISTRESSED SECTORS OF THE UNITED STATES ECONOMY › Part Part A— - Coronavirus Economic Stabilization › § 9043

Last updated Apr 6, 2026|Official source

Summary

The Secretary can only make certain loans or loan guarantees if the company agrees to limit pay for its top officers and employees from the day the deal is signed until one year after the loan or guarantee ends. Anyone who earned more than $425,000 in 2019 (except workers with a union contract signed before March 1, 2020) cannot be paid more than they got in 2019 in any 12‑month stretch, and their severance or exit benefits cannot be more than twice their 2019 pay. Anyone who earned more than $3,000,000 in 2019 can be paid at most $3,000,000 plus half of the amount they earned over $3,000,000. “Total compensation” means salary, bonuses, stock awards, and other financial benefits.

Full Legal Text

Title 15, §9043

Commerce and Trade — Source: USLM XML via OLRC

(a)The Secretary may only enter into an agreement with an eligible business to make a loan or loan guarantee under paragraph (1), (2) or (3) of section 9042(b) of this title if such agreement provides that, during the period beginning on the date on which the agreement is executed and ending on the date that is 1 year after the date on which the loan or loan guarantee is no longer outstanding—

(1)no officer or employee of the eligible business whose total compensation exceeded $425,000 in calendar year 2019 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to March 1, 2020)—

(A)will receive from the eligible business total compensation which exceeds, during any 12 consecutive months of such period, the total compensation received by the officer or employee from the eligible business in calendar year 2019; or

(B)will receive from the eligible business severance pay or other benefits upon termination of employment with the eligible business which exceeds twice the maximum total compensation received by the officer or employee from the eligible business in calendar year 2019; and

(2)no officer or employee of the eligible business whose total compensation exceeded $3,000,000 in calendar year 2019 may receive during any 12 consecutive months of such period total compensation in excess of the sum of—

(A)$3,000,000; and

(B)50 percent of the excess over $3,000,000 of the total compensation received by the officer or employee from the eligible business in calendar year 2019.

(b)In this section, the term “total compensation” includes salary, bonuses, awards of stock, and other financial benefits provided by an eligible business to an officer or employee of the eligible business.

Reference

Citations & Metadata

Citation

15 U.S.C. § 9043

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73