Curtailing Executive Overcompensation (CEO) Act

This bill would create a new federal excise tax on large employers when the pay of their highest-paid employee is more than 50 times the median pay of their workers. It applies to employers with at least $100 million in gross receipts and more than $10 million in wages paid in each of the prior three years, with those amounts adjusted for inflation after 2027. The tax is based on how far the pay ratio exceeds 50 and on the top employee's five-year average pay, but it cannot be more than 1 percent of the employer's gross receipts. Employers could not deduct this tax from their income taxes, and the Treasury would write rules to prevent avoidance, such as replacing employees with contractors.

Full text and official record on Congress.gov

Sponsors

• Sheldon Whitehouse Democrat sponsor
• 5 cosponsors