Bill > H2967

This bill establishes a tax on excessive executive compensation. It defines "compensation" differently for regular employees versus the chief executive officer, chief operating officer, or highest paid employee. The bill imposes an additional tax rate on corporations with a net income of $10 million or more, based on the ratio of the compensation of the highest paid employee to the median compensation of all employees. The tax rate increases as the compensation ratio increases, up to an additional 10% if the ratio is over 500. Additionally, if the total number of full-time employees in the U.S. is reduced by more than 10% compared to the previous year, and the number of contracted or foreign full-time employees increases, the applicable tax rate will be increased by 50%.

Budget and Finance

https://malegislature.gov/Bills/193/H2967