‘Overpaid CEO Tax’ Passes Overwhelmingly In SF
San Francisco has been the poster boy city for income inequality for years. But on election day, SF voters passed a law that might finally bring some fairness to our wildly out-of-whack socioeconomic ridiculousness. The Proposition L Business Tax, commonly known as the “Overpaid CEO tax,” was approved by a double-digit margin.Image: SF Dept. of Elections
As you can see in the image above from the SF Elections Department, Prop. L passed in a landslide, with a nearly 2-to-1 rate of Yes votes.
According to the text of the measure, the tax applies to “businesses in which the highest-paid managerial employee earns more than 100 times the median compensation of employees.” The city estimates this will generate somewhere between $60 million to $140 million a year.
It doesn’t just apply to the CEO’s salary. According to the San Jose Mercury News, “gross receipts and CEO compensation will include money made from stock options, bonuses, tax refunds, and property.” Surprisingly, a city economist’s report thinks that more banking and financial firms will be hit with the tax than tech forms that get hit.
Portland has a similar tax, but it only applies to companies who are publicly traded on a stock exchange. San Francisco’s Overpaid CEO tax will apply to all companies.