Bill · S. 5011· Senate(119-S-5011)
Curtailing Executive Overcompensation (CEO) Act
- Introduced
- 7/16/2026
- Last activity
- 7/16/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Sheldon Whitehouse
- Cosponsors
- - 5 - 0
- Introduced
- In Committee
What this bill would do
This legislation is titled the Curtailing Executive Overcompensation (CEO) Act and proposes adding a new chapter to the Internal Revenue Code of 1986. The bill specifically introduces an excise tax on certain employers who pay excessively disparate wages to their chief executive officers. Under the bill, an applicable employer is generally defined as a company with at least $100,000,000 in gross receipts and more than $10,000,000 paid in wages over a specific period. The tax applies when the ratio of the highest compensated employee's wages to the median wages of all applicable employees exceeds a certain threshold. The legislation also directs the Secretary to issue regulations to prevent the avoidance of these rules, such as through workforce manipulation or the use of contractors.
Yes· 3 of 12
Does this raise the taxes companies pay?+5
The bill introduces an excise tax on certain large corporations with excessive CEO pay disparity.
Does this raise taxes on the highest earners?+3
Imposing an excise tax on excessive executive compensation indirectly targets high-earning individuals.
Would households on low incomes be better off under this?+2
Encourages companies to narrow the wage gap, potentially increasing compensation for lower-wage workers.
The opposite· 3 of 5
Would high-income households be better off under this?-3
Imposes financial penalties on corporations with extremely high executive compensation ratios.
Would people with substantial wealth be better off under this?-3
Executes tax penalties on excessive compensation packages typical of high-net-worth corporate leaders.
Would the very wealthiest people be better off under this?-3
Directly penalizes the extreme end of executive compensation.
Who it would affect, and how
Potential Positive Impacts for People
- Section 2(a) introduces an excise tax on companies with extreme pay gaps between their highest-paid executive and their typical workers, which could encourage corporations to narrow the wage gap and direct more financial resources toward everyday employees.
Potential Negative Impacts for People
- Section 2(a) and Section 2(b) establish a new excise tax on certain employers that cannot be deducted from income taxes, which could potentially create a financial burden for businesses that may then pass those costs onto consumers or workers.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Corporate Taxes+5Increases Wealthy Taxes+3Improves Fiscal Responsibility+1Reduces National Debt+1
- Demographic And Interest Groups
- Good For Low Income Households+2Good For Middle Class Households+2Good For Union Workers+2Good For Middle Aged+1Good For Young Adults+1Good For Billionaires-3Good For High Income Households-3Good For High Net Worth Individuals-3Good For Ultra High Net Worth Individuals-3Good For Business Owners-2
- Governance And Ideology
- Improves Government Transparency+1Increases Federal Power+1
- Social Issues And Justice
- Improves Poverty Reduction+2
- 7/16/2026
- Read twice and referred to the Committee on Finance.
- 5 Cosponsors added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tammy BaldwinDemocrat · Wisconsin
Jeff MerkleyDemocrat · Oregon
Chris Van HollenDemocrat · Maryland
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts