(F) and (G) in subparagraph (G) and inserting subparagraphs (E) and (F) . (ii) Section 162(m)(6) of such Code is amended— (I) by striking subparagraphs (B), (C), and (D) thereof in subparagraph (D) and inserting subparagraphs (B) and (C) thereof , and (II) by striking subparagraphs (F) and (G) in subparagraph (G) and inserting subparagraphs (E) and (F) . (2) Inclusion of performance-based compensation (A) In general Paragraph (4) of section 162(m) of the Internal Revenue Code of 1986, as amended by subsection (a) and paragraph (1) of this subsection, is amended by striking subparagraph (B) and redesignating subparagraphs (C) through (F) as subparagraphs (B) through (E), respectively. (B) Conforming amendments (i) Section 162(m)(5) of such Code, as amended by paragraph (1), is amended— (I) by striking subparagraphs (B) and (C) thereof in subparagraph (E) and inserting subparagraph (B) thereof , and (II) by striking subparagraphs (E) and (F) in subparagraph (G) and inserting subparagraphs (D) and (E) . (ii) Section 162(m)(6) of such Code, as amended by paragraph (1), is amended— (I) by striking subparagraphs (B) and (C) thereof in subparagraph (D) and inserting subparagraph (B) thereof , and (II) by striking subparagraphs (E) and (F) in subparagraph (G) and inserting subparagraphs (D) and (E) . (c) Expansion of applicable employer Paragraph (2) of section 162(m) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Publicly held corporation For purposes of this subsection, the term publicly held corporation means any corporation which is an issuer (as defined in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ))— (A) the securities of which are registered under section 12 of such Act ( 15 U.S.C. 78l ), or (B) that is required to file reports under section 15(d) of such Act ( 15 U.S.C. 780(d) ). . (d) Regulatory authority (1) In general Section 162(m) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (7) Regulations The Secretary may