February 9, 2017
Pay Ratio: Efforts at the State & City Level
– Art Meyers, Choate
The Dodd-Frank pay ratio disclosure requirements may be repealed, but several cities & states may continue their efforts to impose pay ratio surtaxes. If the federal rules are repealed, they would need to redraft their legislation to build in the pay ratio rules rather than simply incorporating the federal rules by reference.
Here is a list of locations (in addition to Portland’s measure) & where things stand to our knowledge:
Connecticut: Two of them –
– 2017 CT H 6373, Title: An Act Establishing a Pay Ration Corporation Income Tax on Publicly Traded Companies. Introduced 1/23/2017. Status: Referred to Jt. Comm. On Finance, Revenue and Bonding.
– 2017 CT H 6101, Title: An Act Concerning Financial Assistance and Tax Expenditures for Businesses With High Chief Executive Officer Pay. Introduced 1/20/2017. Status: Referred to Jt. Comm. On Commerce.
Minnesota: (2017) MN H 65, A bill for an act relating to taxation; corporate franchise; imposing a surtax on certain corporations with high principal executive officer to median worker pay ratios; amending Minnesota Statutes 2016, section 290.06, by adding a subdivision. Introduced 1/5/2017. Status: Referred to Taxes.
Rhode Island: 2017 H 5141, An Act Relating to Taxation (Establishes a surtax on the business corporation tax for publicly traded corporations subject to SEC disclosure and reporting requirements, if corporation’s ratio of compensation for its CEO to median worker is equal to or greater than 100 to 1.) Introduced 1/18/2017. Status: Referred to House Finance.
San Francisco: The San Francisco “legislation” is still at the discussion stage as of late January. City Supervisor Jane Kim and Supervisor Hilary Ronen requested the City Attorney’s Office to draft legislation on the issue.