In this section the following words have the meanings indicated. “Bonus” means a form of direct or indirect payment, consideration, or compensation that is paid or conveyed to an employee of a public service company in addition to the employee’s base pay. “Bonus” includes: compensation that the public service company does not formally label as a bonus payment; any form of incentive compensation the fact and amount of which is under the discretion of the public service company until a time close to the end of the period for which the incentive payment is paid; and payments given in addition to base pay that are contingent on the occurrence of one or more events or conditions. “Compensation” means a form of payment or consideration conveyed to or for the benefit of an employee of a public service company, the parent company of a public service company, or any other affiliate of a public service company in connection with the employee’s work for a public service company. “Compensation” includes: direct and indirect methods of conferring benefits; cash and noncash benefits; salary, bonuses, period payments, and severance pay; and the value of a perquisite, compensatory or paid leave, or other benefit not excluded under subparagraph (iii) of this paragraph. “Compensation” does not include any expenditure of a public service company for health, medical, dental, vision, or life insurance or disability pay. “Supervisor” means an employee of a public service company, the parent company of a public service company, or any other affiliate of a public service company who: using the employee’s independent judgment: is authorized by the employee’s employer to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees; is responsible for directing the work performance of other employees; and is responsible for responding to employee complaints; or is employed in a bona fide executive capacity under the federal Fair Labor Standards Act. This section applies only to a public service company that is an investor–owned electric company, gas company, or combination gas and electric company. A public service company may not recover through rates any costs associated with: membership, dues, sponsorships, or contributions to an industry trade association, group, or related entity exempt from taxation under § 501(c)(6) of the Internal Revenue Code; the acquisition, use, or allocation of costs associated with a private plane that is owned or leased by the public service company or its holding company; or compensation for a supervisor that exceeds 110% of the maximum annual salary payable to the chair of the Commission for the same calendar year. The board of directors of each public service company shall adopt a company–wide policy placing reasonable cost limitations on expenditures that the public service company intends to recover through rates for: entertainment and events; office and facility renovations; transportation services, including aviation; staff development activities or events; performance incentives; and other activities outside the scope of the normal course of business operations. Each public service company shall send a copy of the policy adopted under paragraph (1) of this subsection to the Commission: as soon as practicable; and each time the policy is updated, but not less than once every 5 years. The Commission may review in a base rate proceeding the reasonableness of the cost limitations in a policy adopted under paragraph (1) of this subsection.