REQUESTING THE UNIVERSITY OF HAWAII ECONOMIC RESEARCH ORGANIZATION TO CONDUCT A STUDY OF THE CEO-TO-WORKER PAY RATIO IN THE STATE.

2025 Regular Session Introduced by Karl Rhoads

UHERO will study Hawaii’s CEO-to-worker pay ratio by industry and report policy options to reduce the gap to the 2026 Legislature.

Referred to HRE/LBT.

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SCR 133 — Summary

Overview

SCR 133 is a concurrent resolution in the Hawaii Legislature that requests the University of Hawaii Economic Research Organization (UHERO) to conduct a state-focused study on the CEO-to-worker pay ratio and to report its findings and policy recommendations to the Legislature ahead of the 2026 regular session. The bill is introduced and referred to the committees on Economic Development, Tourism, and Technology (HRE) and Labor, in addition to a concurrent resolution action.

Purpose and Intent

The primary intent is to assess the gap between CEO/executive pay and typical worker pay within Hawaii, with a view toward informing policy options to reduce the disparity.

The resolution frames the issue in the context of national and local debates about pay inequality and executive compensation.

Key Provisions

UHERO is requested to conduct a study of the CEO-to-worker pay ratio for companies operating in Hawaii, preferably broken down by industry.

The study should:

Determine the ratio of CEO/executive pay to typical worker pay.
Assess the impact of various pay ratios on Hawaii’s economy.
Identify and evaluate options for the State to reduce the pay ratio, including considerations for nonprofit-designated entities and companies regulated by the Public Utilities Commission (PUC).

UHERO must submit a report of findings and recommendations, including any proposed legislation, to the Legislature no later than forty days prior to the convening of the 2026 regular session.

Certified copies of SCR 133 are to be transmitted to:

Director of Business, Economic Development, and Tourism (BEDT)
Executive Director of UHERO
Insurance Commissioner
Chairperson of the PUC

Timeline and Procedural Details

Introduced: March 7, 2025

Referred: March 12, 2025 to HRE/LBT (Joint referral)

Legislature status: Concurrent resolution (non-binding guidance/request)

No explicit funding appropriation is described in the bill text; the action is a study and reporting mandate to UHERO.

Affected Parties

University of Hawaii Economic Research Organization (UHERO) as the lead research entity

Hawaii-based companies operating in the state (including sectors potentially covered by nonprofits and PUC-regulated utilities)

State agencies and regulatory bodies (BEDT, Insurance Commissioner, PUC)

Background Context (Whereas Clauses)

Cites EPI data on long-term increases in CEO pay versus typical worker pay.

Notes historical CEO-to-worker pay ratios and contemporary disparities (including national references up to 2023).

References concerns about executive compensation in Hawaii and potential policy tools (tax penalties, incentives, transparency) as broader context for addressing pay inequality.

Related Measures

Companion bill: SR 112

Sponsor

Primary: RHOADS

This summary captures the bill’s objective to illuminate Hawaii’s CEO-to-worker pay landscape and explore policy options, via UHERO’s study and a formal report to the 2026 Legislature.