A measure aimed at curtailing excessive CEO pay has stalled in the California Senate today.
The measure would have taxed public corporations that do business in California based on how much their top paid employee earns compared to the company’s median salary. Larger pay disparities would result in higher taxes.
Democratic Senator Mark DeSaulnier sponsored the measure. He says CEO pay has become excessive compared to employee salaries.
“For decades the average compensation of a publicly traded company in the United States was 30 times over the median worker. It’s now up to almost 300 times," he says.
DeSaulnier struggled to get the votes he needed for the bill. Several Democrats voted against the measure. Additionally, numerous business groups opposed the bill, saying it could drive business from the state and cause corporate taxes to rise dramatically.