Bill > S00323

This bill introduces a new annual tax for companies subject to United States Securities and Exchange Commission (SEC) pay ratio reporting requirements, specifically targeting firms with significant disparities between executive and median worker compensation. Starting in 2026, companies that report a pay ratio between 100:1 and 250:1 will be required to pay an additional 10% of their base tax liability, while companies with a pay ratio of 250:1 or higher will be subject to a 25% additional tax. The pay ratio is calculated by comparing the compensation of the chief executive officer to the median compensation of all employees, as disclosed in SEC filings. This legislation aims to address income inequality by financially incentivizing companies to reduce extreme executive compensation disparities. The tax will apply to all tax years beginning on or after January 1, 2026, and will impact publicly traded companies that are already required to report their executive-to-worker pay ratios under existing SEC regulations.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S323