Curtailing Executive Overcompensation (CEO) Act

HR 6191, the Curtailing Executive Overcompensation (CEO) Act, imposes a new tax on large corporations with significant pay gaps between top executives and typical workers. It targets companies with at least $100 million in annual revenue (adjusted for inflation) and over $10 million in annual wages paid to employees. The tax equals 1% of either the calculated pay disparity (CEO pay over 5 years divided by median worker pay, minus 50) multiplied by the excess pay, or the company’s gross receipts. This applies to taxable years starting after the bill’s enactment, aiming to tax excessive CEO compensation relative to average worker pay.