What’s one way to stop companies from paying their CEOs too much? Taxes.
Portland, Ore. this week passed a law that penalizes companies whose chief executives make more than 100 times the median pay of their workers.
The tax, approved by Portland’s city council, is a way of combatting income inequality.
Companies will have to pay an additional 10 percent in taxes if they violate the rule, according to the New York Times. If a chief executive earns more than 250 times as much as his employees taxes will increase 25 percent. Read more…