Bill > A03691

This bill requires certain companies to pay an annual tax if the chief executive's compensation is 100 to 250 times greater than the median pay of all their employees. The tax rate is 10% of the company's base tax liability if the pay ratio is at least 100 to 1 but less than 250 to 1, or 25% if the pay ratio is 250 to 1 or greater. This requirement applies to companies subject to the United States Securities and Exchange Commission's pay ratio reporting requirements, which was established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act.