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Curtailing Executive Overcompensation (CEO) Act
12/15/2023, 4:09 PM
Summary of Bill S 3176
Bill 118 s 3176, also known as the Curtailing Executive Overcompensation (CEO) Act, aims to address the issue of excessive compensation for executives of corporations. The bill seeks to limit the amount of compensation that executives can receive, in order to ensure that companies are not overpaying their top officials at the expense of their employees and shareholders.
The CEO Act would establish a cap on executive compensation, limiting the amount that executives can receive in salary, bonuses, and other forms of compensation. The bill would also require companies to disclose the ratio of CEO pay to median employee pay, in order to increase transparency and accountability in executive compensation practices.
Additionally, the CEO Act would prohibit companies from providing excessive golden parachute payments to executives who are terminated or leave the company. These payments are often seen as excessive and unfair, especially when employees are laid off or face financial hardship. Overall, the CEO Act aims to promote fairness and equity in executive compensation practices, and to ensure that companies are not overpaying their top officials at the expense of their employees and shareholders. The bill has received bipartisan support in Congress, with lawmakers from both parties recognizing the need to address the issue of excessive executive compensation.
The CEO Act would establish a cap on executive compensation, limiting the amount that executives can receive in salary, bonuses, and other forms of compensation. The bill would also require companies to disclose the ratio of CEO pay to median employee pay, in order to increase transparency and accountability in executive compensation practices.
Additionally, the CEO Act would prohibit companies from providing excessive golden parachute payments to executives who are terminated or leave the company. These payments are often seen as excessive and unfair, especially when employees are laid off or face financial hardship. Overall, the CEO Act aims to promote fairness and equity in executive compensation practices, and to ensure that companies are not overpaying their top officials at the expense of their employees and shareholders. The bill has received bipartisan support in Congress, with lawmakers from both parties recognizing the need to address the issue of excessive executive compensation.
Congressional Summary of S 3176
Curtailing Executive Overcompensation (CEO) Act
This bill imposes an excise tax on employers (i.e., business entities) that have at least a 50 to 1 disparity between the wages (including bonuses, stock awards and options) of chief executive officers and the wages paid to their workers. The bill applies to employers that have not less than $100 million in annual gross receipts and $10 million in payroll over a 3 year period.
The bill limits such tax to 1% of an employer's gross receipts.
Read the Full Bill
Current Status of Bill S 3176
Bill S 3176 is currently in the status of Bill Introduced since November 1, 2023. Bill S 3176 was introduced during Congress 118 and was introduced to the Senate on November 1, 2023. Bill S 3176's most recent activity was Read twice and referred to the Committee on Finance. as of November 1, 2023
Bipartisan Support of Bill S 3176
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
4Democrat Cosponsors
4Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill S 3176
Primary Policy Focus
TaxationAlternate Title(s) of Bill S 3176
Curtailing Executive Overcompensation (CEO) Act
Curtailing Executive Overcompensation (CEO) Act
A bill to amend the Internal Revenue Code of 1986 to impose an excise tax on excessively disparate wages paid to chief executive officers.
Comments
Sponsors and Cosponsors of S 3176
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