Imposing a surcharge on publicly traded companies providing excessive executive compensation.

HB 1785 imposes a surcharge on Washington-based publicly traded companies with CEO pay at least 50 times the median employee wage. The surcharge is 10% for ratios of 50-149:1 and 25% for ratios of 150:1 or higher, applied to state corporate taxes starting January 1, 2026. Companies must disclose their executive pay ratio to the SEC (per Dodd-Frank Act); failure to report triggers the 25% rate. All revenue from the surcharge funds the state general fund.