The US city of Portland in Oregon will impose a tax on public companies which have CEO-worker pay ratios of greater than 100-1. The tax, which was passed last week, will increase corporate income tax by 10% for a higher than 100-1 ratio and by 25% for a higher than 250-1 ratio. In the UK, the government has announced plans to introduce an annual cap on executive pay, with no limit set until 2023. The money will be used to fund schemes for homeless people. “I don’t really think you’re going to see actions by corporations based on this,” she added. Approximately 540 publicly traded companies are currently subject to business income tax in the city.
The US city of Portland in Oregon will impose a tax on public companies which have CEO-worker pay ratios of greater than 100-1. The tax, which was passed last week, will increase corporate income tax by 10% for a higher than 100-1 ratio and by 25% for a higher than 250-1 ratio. In the UK, the government has announced plans to introduce an annual cap on executive pay, with no limit set until 2023. The money will be used to fund schemes for homeless people. Approximately 540 publicly traded companies are currently subject to business income tax in the city.