Bill > A00970

This bill introduces an annual tax penalty for companies subject to U.S. Securities and Exchange Commission (SEC) pay ratio reporting requirements, specifically targeting firms with significant disparities between executive and median employee compensation. Starting January 1, 2026, companies with a pay ratio of 100-250 times (where the CEO's compensation is 100 to 250 times higher than the median employee's pay) will be taxed at 10% of their base tax liability, while companies with a pay ratio of 250 times or more will be taxed at 25% of their base tax liability. The tax is designed to create a financial disincentive for extreme executive compensation disparities, potentially encouraging more equitable pay structures within companies. The bill applies to all tax years beginning on or after January 1, 2026, and specifically targets publicly traded companies that are already required to disclose their pay ratios under SEC regulations.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A970