Massachusetts S2026 amends tax laws to impose an additional tax on financial institutions with high executive compensation ratios.

Massachusetts S2026 amends the state tax code to introduce an additional tax on financial institutions starting from taxable years beginning on or after January 1, 2027. This tax applies to institutions with a compensation ratio exceeding 100, calculated as the compensation of the chief executive officer or the highest-paid employee divided by the median compensation of all employees. The tax consists of the total excise levied plus an additional 2% of the corporation's net income. This measure aims to address excessive executive compensation within financial institutions.

Massachusetts S2026 amends tax laws to impose an additional tax on financial institutions with high executive compensation ratios.

Massachusetts S2026 amends the state tax code to introduce an additional tax on financial institutions starting from taxable years beginning on or after January 1, 2027. This tax applies to institutions with a compensation ratio exceeding 100, calculated as the compensation of the chief executive officer or the highest-paid employee divided by the median compensation of all employees. The tax consists of the total excise levied plus an additional 2% of the corporation's net income. This measure aims to address excessive executive compensation within financial institutions.