An Act relative to excessive executive compensation
Generates a plain-language summary of the bill text and history.
| Date | Branch | Action |
|---|---|---|
| 7/16/2026 | House | Committee recommended ought NOT to pass and referred to the committee on House Steering, Policy and Scheduling |
| 4/1/2026 | Senate | Reporting date extended to Thursday June 25, 2026 |
| 10/3/2025 | Joint | Hearing rescheduled to 10/03/2025 from 10:00 AM-12:35 PM in Gardner Auditorium — Hearing updated to New End Time |
| 9/24/2025 | Joint | Hearing scheduled for 10/03/2025 from 10:00 AM-05:00 PM in Gardner Auditorium |
| 2/27/2025 | House | House concurred |
| 2/27/2025 | Senate | Referred to the committee on Revenue |
No additional cosponsors.
| Committee | Recommendation | Vote |
|---|---|---|
| J26 | Adverse | 1 entries |
| Bill | Title | Status |
|---|---|---|
| H3261 | An Act establishing a tax on excessive executive compensation | Active |
Section 1 of chapter 63 of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by inserting after the definition of “compensation” the following definition:- “Compensation ratio” for a taxable year means a ratio where the numerator is the amount equal to the greater of the compensation of the chief executive officer or the highest paid employee of the business for the calendar year preceding the beginning of the taxable year and the denominator is the amount equal to the median compensation of all employees employed by the business, including all contracted employees under contract with the business, in the United States for the calendar year preceding the beginning of the taxable year.
Section 2 of said chapter 63 of the General Laws is hereby amended by inserting the following subsection:- (e) Except as provided in (b) and (d), For taxable years beginning on or after January 1, 2027, the tax imposed under this section upon financial institutions whose compensation ratio exceeds 100, the sum of the of subsection (a) and an additional 2 per cent of the corporation’s net income determined to be taxable in accordance with this chapter.
Section 39 of said chapter 63 of the General Laws is hereby amended by inserting the following subsection:- (c) For taxable years beginning on or after January 1, 2027, the tax imposed under this section upon a publicly held corporation, as defined in Section 162(m)(2) of the Internal Revenue Code, relating to publicly held corporation whose compensation ratio exceeds 100, the sum of the total excise levied in subsection (a) and an additional 2 per cent of the corporation’s net income determined to be taxable in accordance with this chapter.
SECTION 1. Section 1 of chapter 63 of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by inserting after the definition of “compensation” the following definition:- “Compensation ratio” for a taxable year means a ratio where the numerator is the amount equal to the greater of the compensation of the chief executive officer or the highest paid employee of the business for the calendar year preceding the beginning of the taxable year and the denominator is the amount equal to the median compensation of all employees employed by the business, including all contracted employees under contract with the business, in the United States for the calendar year preceding the beginning of the taxable year. SECTION 2. Section 2 of said chapter 63 of the General Laws is hereby amended by inserting the following subsection:- (e) Except as provided in (b) and (d), For taxable years beginning on or after January 1, 2027, the tax imposed under this section upon financial institutions whose compensation ratio exceeds 100, the sum of the of subsection (a) and an additional 2 per cent of the corporation’s net income determined to be taxable in accordance with this chapter. SECTION 3. Section 39 of said chapter 63 of the General Laws is hereby amended by inserting the following subsection:- (c) For taxable years beginning on or after January 1, 2027, the tax imposed under this section upon a publicly held corporation, as defined in Section 162(m)(2) of the Internal Revenue Code, relating to publicly held corporation whose compensation ratio exceeds 100, the sum of the total excise levied in subsection (a) and an additional 2 per cent of the corporation’s net income determined to be taxable in accordance with this chapter.