Bill > HB5279

This bill introduces a new consideration for state agencies when awarding contracts, focusing on executive compensation. Specifically, when determining the "best value" for a state contract, agencies must now evaluate whether a vendor's chief executive officer's total annual compensation (including cash, equity, and other benefits) is not more than 20 times the median annual compensation of the vendor's full-time employees. This means that if a CEO earns significantly more than the typical employee, it could potentially disadvantage the vendor in the state contract bidding process. The new rule will apply to any contract for which bids or proposals are made public on or after the bill's effective date of September 1, 2025. The goal appears to be promoting more equitable compensation practices among companies seeking state contracts by creating a financial incentive for businesses to maintain a more balanced pay structure between their top executives and other employees.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5279