Texas HB5279 adds CEO compensation as a factor in awarding state contracts.

HB5279 amends the Texas Government Code to include the compensation of a vendor's chief executive officer as an additional factor in determining the best value for the state when awarding a contract. Specifically, state agencies must consider whether the CEO's total annual compensation, including cash, equity, and other benefits, does not exceed 20 times the median annual compensation of all full-time employees. This change applies to contracts for which the request for bids or proposals is made public on or after the effective date of the Act, which is September 1, 2025.

Texas HB5279 adds CEO compensation as a factor in awarding state contracts.

HB5279 amends the Texas Government Code to include the compensation of a vendor's chief executive officer as an additional factor in determining the best value for the state when awarding a contract. Specifically, state agencies must consider whether the CEO's total annual compensation, including cash, equity, and other benefits, does not exceed 20 times the median annual compensation of all full-time employees. This change applies to contracts for which the request for bids or proposals is made public on or after the effective date of the Act, which is September 1, 2025.