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Portland's Excessive CEO Tax

What are your thoughts on Portland passing a new regulation to tax CEOs who earn more than 100x the median worker?

http://www.bizjournals.com/portland/news/2016/12/08/portland-passes-tax-on-ceo-pay.html?ana=twt

zach

Comments

  • Hi Corie, just to clarify, the CEO's will not be taxed - it is a tax on the company. The distinction is important. The impact of a tax on the CEO would be light - the CEO would be paying the tax and nobody else really cares - but the tax on the company mainly affects the shareholders (reduced earnings and dividends) and it calls attention to the company's apparent contribution to income inequality.

    Unlike the Portland Business Alliance CEO, I happen to think it is OK to pick on public corporations that pay excessive salaries to their CEOs - with the new SEC reporting requirement of the ratio, at least there is a benchmark for what is "excessive" even it it is arbitrary - one of the things we seem to lack in our numbering system is a concept of "plenty" - that is, when is compensation "plenty" and when is is more than enough.

    Hi David - The Portland Trailblazers should not be affected as they are a private company (not publicly traded). Also, if they were a public company, the CEO would have to earn more than 100 times the trailblazer's median worker. That might be a relatively small dollar amount - I doubt any of the players (and coaches, etc. in the highly compensated range would be earning the median salary for the organization.

    Thanks to both of you for a fun exercise

    [Deleted User]jordan
  • I came across this article and thought it was interesting, regarding Portland's new tax. https://www.fastcompany.com/3066567/the-future-of-work/why-portlands-tax-on-ceo-pay-matters

    zach[Deleted User]
  • @Patrick Haggerty Thank you for your insight as always!! :)

    jordan
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