Calif. Senate Panel Backs CEO Pay-Related Tax Hike

Law360, New York (April 24, 2014, 6:46 PM ET) -- California lawmakers gave initial support Thursday to proposed legislation that would impose higher corporate taxes on public companies with exorbitant CEO salaries, a measure the bill's authors say will help address rising income inequality.

SB 1372, which cleared the California Senate Governance and Finance Committee by a 5-2 vote, would increase taxes on companies that pay its top executives more than 100 times what it pays its average worker and imposes a penalty on corporations that shift hiring to contract employees.

Bill authors Sens. Loni Hancock, D-Oakland,...
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