MA H3261

Corporations with net income of $10 million or more would pay additional corporate tax based on their executive-to-worker pay ratio, with surcharges ranging from 0% (ratio up to 50:1) to 10% (ratio over 500:1)

Compensation ratio calculated using the higher of CEO, COO, or highest-paid employee's 3-year average compensation divided by median compensation of all U.S. employees including contractors

Companies reducing U.S. full-time employees by more than 10% while increasing contracted or foreign workers would face a 50% increase in the applicable tax surcharge

Executive compensation measured using SEC Summary Compensation Table disclosures; worker compensation based on wages as defined in Massachusetts General Laws

Effective date: January 1, 2026