The City Council in Portland, Oregon, voted on December 7th to impose am executive-pay surcharge as a percentage of what a company owes on the city’s so-called business license tax, Publicly traded companies whose chief executives earn more than 100 times the median pay of their rank-and-file workers will pay 10% and companies with pay ratios greater than 250 times the median will face a 25 %.
The tax will take effect after the Securities and Exchange Commission begins next year to require public companies to calculate and disclose how their chief executives’ compensation compares with their workers’ median pay. .