Bill > S1509

This bill proposes to amend Massachusetts General Laws Chapter 63 to introduce a new tax on corporations with excessive executive compensation. It defines a "compensation ratio" as the amount of the chief executive officer's or highest-paid employee's compensation divided by the median compensation of all employees, including contracted workers, in the United States. For taxable years beginning on or after January 1, 2016, financial institutions and publicly held corporations (companies whose stock is traded on a public exchange, as defined by the Internal Revenue Code) will face an additional 2% tax on their net income if their compensation ratio exceeds 100, meaning the top earner makes more than 100 times the median employee's pay. This additional tax would be levied on top of existing taxes.