text: SECTION 1. SPECIAL RULES FOR EXECUTIVE PERKS AND RETIREMENT BENEFITS.
  
      (a) In General.--Part I of subchapter D of chapter 1 of the 
  Internal Revenue Code of 1986 (relating to pension, profit-sharing, 
  stock bonus plans, etc.) is amended by adding at the end the following 
  new subpart:
  
   ``subpart f--special rules for executive perks and retirement benefits
  
                                ``Sec. 420A. Holding period requirement 
                                          for stock acquired through 
                                          exercise of option.
                                ``Sec. 420B. Additional tax on 
                                          nondisclosed retirement perks.
                                ``Sec. 420C. Inclusion in gross income of 
                                          funded deferred compensation of 
                                          corporate insiders.
                                ``Sec. 420D. Definitions and special 
                                          rule.
  
  ``SEC. 420A. HOLDING PERIOD REQUIREMENT FOR STOCK ACQUIRED THROUGH 
                EXERCISE OF OPTION.
  
      ``(a) In General.--In the case of a corporate insider with respect 
  to a corporation, the tax imposed by this chapter on a corporate 
  insider for any taxable year shall be increased by 50 percent of the 
  amount realized by such insider from the disqualified disposition 
  during such year of stock acquired by the corporate insider upon the 
  exercise of a stock option granted by the corporation with respect to 
  which such individual is a corporate insider.
      ``(b) Disqualified Disposition of Stock.--
              ``(1) In general.--For purposes of subsection (a), the term 
          `disqualified disposition of stock' means any sale, exchange, 
          or other disposition of stock which, if such stock were 
          employer securities held in a qualified cash or deferred 
          arrangement (as defined in section 401(k)(2)), would violate 
          any restriction imposed on the sale or other disposition of 
          such securities by the plan of which such arrangement is a 
          part.
              ``(2) Special rule for 2 or more cash or deferred 
          arrangements.--If a corporation has more than 1 qualified cash 
          or deferred arrangement (as so defined), the restrictions which 
          apply for purposes of paragraph (1) shall be the most 
          restrictive provisions relating to the disposition of employer 
          securities held pursuant to any such arrangements.
  
  ``SEC. 420B. ADDITIONAL TAX ON NONDISCLOSED RETIREMENT PERKS.
  
      ``(a) In General.--In the case of a publicly traded corporation, 
  the tax imposed by this chapter for the taxable year shall be increased 
  by 50 percent of the net cost to the corporation for the taxable year 
  of personal perks provided to a retired executive of the corporation.
      ``(b) Waiver If Perks Provided Pursuant to Shareholder Approval.--
  Subsection (a) shall not apply with respect to any personal perks 
  provided pursuant to a contract if--
              ``(1) all of the material terms of such contract (including 
          a description of the benefits to be provided to the executive 
          and the extent of such benefits) are disclosed to shareholders, 
          and
              ``(2) such contract is approved by a majority of the vote 
          in a separate shareholder vote before any benefits are provided 
          under the contract.
      ``(c) Net Cost of Personal Perks.--
              ``(1) In general.--For purposes of subsection (a), the net 
          cost of personal perks provided to a retired executive is the 
          excess of--
                      ``(A) the cost to the corporation of such perks, 
                  over
                      ``(B) the amount paid in cash during the taxable 
                  year by the executive to reimburse the corporation for 
                  the cost of such perks.
              ``(2) Personal perks.--For purposes of paragraph (1), the 
          term `personal perks' means--
                      ``(A) the use of corporate-owned property,
                      ``(B) travel expenses, including meals and lodging, 
                  unless such expenses are directly related to the 
                  performance of services by the executive for the 
                  corporation and the business relationship of such 
                  expenses is substantiated under the requirements of 
                  section 274,
                      ``(C) tickets to sporting or other entertainment 
                  events,
                      ``(D) amounts paid or incurred for membership in 
                  any club organized for business, pleasure, recreation, 
                  or other social purpose, and
                      ``(E) other personal services, including services 
                  related to maintenance or protection of any personal 
                  residence of the executive.
              ``(3) Cost relating to use of corporate-owned property.--
          For purposes of this subsection--
                      ``(A) In general.--The cost taken into account with 
                  respect to the use of corporate-owned property shall be 
                  the allocable portion of the total cost of operating 
                  such property.
                      ``(B) Allocable portion.--For purposes of 
                  subparagraph (A), the allocable portion of total cost 
                  is--
                              ``(i) the portion of the total cost 
                          (including depreciation) incurred by the 
                          corporation for operating and maintaining such 
                          property during the corporation's taxable year 
                          in which such use occurred,
                              ``(ii) which is allocable to the use 
                          (determined on the basis of the relationship of 
                          such use to the total use of the property 
                          during the taxable year).
  
  ``SEC. 420C. INCLUSION IN GROSS INCOME OF FUNDED DEFERRED COMPENSATION 
                OF CORPORATE INSIDERS.
  
      ``(a) In General.--If an employer maintains a funded deferred 
  compensation plan--
              ``(1) compensation of any corporate insider which is 
          deferred under such funded deferred compensation plan shall be 
          included in the gross income of the corporate insider or 
          beneficiary for the 1st taxable year in which there is no 
          substantial risk of forfeiture of the rights to such 
          compensation, and
              ``(2) the tax treatment of any amount made available under 
          the plan to a corporate insider or beneficiary shall be 
          determined under section 72 (relating to annuities, etc.).
      ``(b) Funded Deferred Compensation Plan.--For purposes of this 
  section--
              ``(1) In general.--The term `funded deferred compensation 
          plan' means any plan providing for the deferral of compensation 
          unless--
                      ``(A) the employee's rights to the compensation 
                  deferred under the plan are no greater than the rights 
                  of a general creditor of the employer, and
                      ``(B) all amounts set aside (directly or 
                  indirectly) for purposes of paying the deferred 
                  compensation, and all income attributable to such 
                  amounts, remain (until made available to the 
                  participant or other beneficiary) solely the property 
                  of the employer (without being restricted to the 
                  provision of benefits under the plan), and
                      ``(C) the amounts referred to in subparagraph (B) 
                  are available to satisfy the claims of the employer's 
                  general creditors at all times (not merely after 
                  bankruptcy or insolvency).
          Such term shall not include a qualified employer plan.
              ``(2) Special rules.--
                      ``(A) Employee's rights.--A plan shall be treated 
                  as failing to meet the requirements of paragraph (1)(A) 
                  unless--
                              ``(i) the compensation deferred under the 
                          plan is payable only upon separation from 
                          service, death, disability, or at a specified 
                          time (or pursuant to a fixed schedule), and
                              ``(ii) the plan does not permit the 
                          acceleration of the time such deferred 
                          compensation is payable by reason of any event.
                  If the employer and employee agree to a modification of 
                  the plan that accelerates the time for payment of any 
                  deferred compensation, then all compensation previously 
                  deferred under the plan shall be includible in gross 
                  income for the taxable year during which such 
                  modification takes effect and the taxpayer shall pay 
                  interest at the underpayment rate on the underpayments 
                  that would have occurred had the deferred compensation 
                  been includible in gross income on the earliest date 
                  that there is no substantial risk of forfeiture of the 
                  rights to such compensation.
                      ``(B) Creditor's rights.--A plan shall be treated 
                  as failing to meet the requirements of paragraph (1)(B) 
                  with respect to amounts set aside in a trust unless--
                              ``(i) the employee has no beneficial 
                          interest in the trust,
                              ``(ii) assets in the trust are available to 
                          satisfy claims of general creditors at all 
                          times (not merely after bankruptcy or 
                          insolvency), and
                              ``(iii) there is no factor that would make 
                          it more difficult for general creditors to 
                          reach the assets in the trust than it would be 
                          if the trust assets were held directly by the 
                          employer in the United States.
                  Except as provided in regulations prescribed by the 
                  Secretary, such a factor shall include the location of 
                  the trust outside the United States.
      ``(c) Other Definitions and Special Rules.--For purposes of this 
  section--
              ``(1) Qualified employer plan.--The term `qualified 
          employer plan' means--
                      ``(A) any plan, contract, pension, account, or 
                  trust described in subparagraph (A) or (B) of section 
                  219(g)(5), and
                      ``(B) any other plan of an organization exempt from 
                  tax under subtitle A.
              ``(2) Plan includes arrangements, etc.--The term `plan' 
          includes any agreement or arrangement.
              ``(3) Substantial risk of forfeiture.--The rights of a 
          person to compensation are subject to a substantial risk of 
          forfeiture if such person's rights to such compensation are 
          conditioned upon the future performance of substantial services 
          by any individual.
              ``(4) Treatment of earnings.--Except for purposes of 
          subsection (a)(1) and the last sentence of (b)(2)(A), 
          references to deferred compensation shall be treated as 
          including references to income attributable to such 
          compensation or such income.
  
  ``SEC. 420D. DEFINITIONS AND SPECIAL RULE.
  
      ``(a) Definitions.--For purposes of this subpart--
              ``(1) Corporate insider.--The term `corporate insider' 
          means, with respect to a corporation, any individual--
                      ``(A) who is subject to the requirements of section 
                  16(a) of the Securities Exchange Act of 1934 with 
                  respect to such corporation, or
                      ``(B) who would be subject to such requirements if 
                  such corporation were an issuer of equity securities 
                  referred to in such section.
              ``(2) Retired executive.--The term `retired executive' 
          means any corporate insider who is no longer performing 
          services on a substantially full time basis in the capacity 
          that resulted in being subject to the requirements of section 
          16(a) of the Securities Exchange Act of 1934.
              ``(3) Publicly traded corporation.--The term `publicly 
          traded corporation' means any corporation issuing any class of 
          securities required to be registered under section 12 of the 
          Securities Exchange Act of 1934.
              ``(4) Corporate-owned property.--
                      ``(A) In general.--Except as provided in 
                  subparagraph (B), the term `corporate-owned property' 
                  means any of the following property owned by a 
                  corporation--
                              ``(i) planes,
                              ``(ii) apartments or other residences,
                              ``(iii) vacation, sports, and entertainment 
                          facilities, and
                              ``(iv) cars.
                  Such term includes any such property which is leased or 
                  chartered by the corporation.
                      ``(B) Exceptions.--Such term does not include any 
                  property used directly by the corporation in providing 
                  transportation, lodging, or entertainment services to 
                  the general public.
      ``(b) Additions to Tax Not Treated As Tax for Certain Purposes.--
  The tax imposed by sections 420A and 420B shall not be treated as a tax 
  imposed by this chapter for purposes of determining--
              ``(1) the amount of any credit allowable under this 
          chapter, or
              ``(2) the amount of the minimum tax imposed by section 
          55.''.
      (b) Clerical Amendment.--The table of subparts for part I of 
  subchapter D of chapter 1 of such Code is amended by adding at the end 
  the following new item:
  
                                ``Subpart F. Special Rules for Executive 
                                          Perks and Retirement 
                                          Benefits.''.
      (c) Effective Date.--The amendments made by this section shall take 
  effect as follows:
              (1) Section 420A of the Internal Revenue Code of 1986 (as 
          added by this section) shall apply to stock acquired pursuant 
          to the exercise of an option after the date of the enactment of 
          this Act.
              (2)(A) Except as provided by subparagraph (B), section 420B 
          of such Code (as so added) shall apply to perks provided after 
          the date of the enactment of this Act.
              (B) In the case of perks provided pursuant to a contract in 
          existence on the date of the enactment of this Act, such 
          section 420B shall apply to such perks after the date of the 
          first annual shareholders meeting after the date of the 
          enactment of this Act.
              (3) Section 420C of such Code (as so added) shall apply to 
          amounts deferred after the date of the enactment of this Act.
target: Amends the Internal Revenue Code to: (1) increase, for a corporate insider, the applicable tax by 50 percent of the amount realized by such insider from the disqualified disposition of stock (a sale violating specified restrictions) acquired by such corporate insider upon the exercise of a stock option granted by the corporation; (2) increase, for a publicly traded corporation, the applicable tax by 50 percent of the net cost to the corporation of personal perks provided to a retired executive of the corporation; and (3) include in the gross income of a corporate insider funded deferred compensation.
feat_title: To amend the Internal Revenue Code of 1986 to require the same holding period for company stock acquired upon exercise of options as is applicable to company stock in its 401(k) plan, to require disclosure to shareholders of the amount of corporate perks provided to retired executives, and to provide parity for secured retirement benefits between the rank and file and executives.