Curtailing Executive Overcompensation (CEO) Act
The source supplies the latest action, but no lifecycle stage.
Latest action (16 Jul 2026): Read twice and referred to the Committee on Finance.
What this bill does
The Curtailing Executive Overcompensation (CEO) Act would amend the Internal Revenue Code to create a new excise tax on large employers whose top executive is paid at a much higher rate than their typical worker. The tax would apply to companies with at least $100 million in annual gross receipts and more than $10 million in annual wage payments over the preceding three years. It would be triggered when the ratio of the highest-paid employee's average compensation over five years to the median wage of the company's employees exceeds 50-to-1. The tax amount would be based on a formula tied to that pay ratio and the company's wage totals, capped at 1 percent of the employer's gross receipts, and it could not be deducted from income taxes.
The bill would primarily affect large, high-revenue corporations with significant pay gaps between their chief executives and typical employees. It includes rules to prevent related businesses from splitting operations to avoid the thresholds, and it directs the Treasury Department to issue regulations preventing companies from manipulating their workforce composition—such as substituting contractors for employees—to reduce their calculated pay disparity.
The bill was introduced in the Senate on July 16, 2026, by Senator Sheldon Whitehouse with several cosponsors, and referred to the Senate Finance Committee. It has not yet received a committee vote, floor vote, or further action, and its provisions would take effect for taxable years beginning after enactment, should it become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
16 Jul 2026
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 5011 do?
- The Curtailing Executive Overcompensation (CEO) Act would amend the Internal Revenue Code to create a new excise tax on large employers whose top executive is paid at a much higher rate than their typical worker. The tax would apply to companies with at least $100 million in annual gross receipts and more than $10 million in annual wage payments over the preceding three years. It would be triggered when the ratio of the highest-paid employee's average compensation over five years to the median wage of the company's employees exceeds 50-to-1. The tax amount would be based on a formula tied to that pay ratio and the company's wage totals, capped at 1 percent of the employer's gross receipts, and it could not be deducted from income taxes. The bill would primarily affect large, high-revenue corporations with significant pay gaps between their chief executives and typical employees. It includes rules to prevent related businesses from splitting operations to avoid the thresholds, and it directs the Treasury Department to issue regulations preventing companies from manipulating their workforce composition—such as substituting contractors for employees—to reduce their calculated pay disparity. The bill was introduced in the Senate on July 16, 2026, by Senator Sheldon Whitehouse with several cosponsors, and referred to the Senate Finance Committee. It has not yet received a committee vote, floor vote, or further action, and its provisions would take effect for taxable years beginning after enactment, should it become law.
- Has S. 5011 become law?
- The source does not supply a confirmed lifecycle stage for S. 5011. Check the latest action and official source below.
- Who sponsored S. 5011?
- S. 5011 was sponsored by Sen. Whitehouse, Sheldon [D-RI] (D-RI), with 5 cosponsors.
- What's the latest action on S. 5011?
- Read twice and referred to the Committee on Finance. (16 Jul 2026).
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