San Francisco voters approved a tax on businesses that pay their chief executive officer (CEO) or “highest-paid managerial employee” well above the median salary for the rest of their employees.
The amount due will depend on how much more the CEO earns. If a company’s top earner makes 100 times more than the company’s average worker, the business will have to pay a 0.1% surcharge on its annual business tax payment. If a CEO makes 200 times more, the company will pay 0.2%. If a CEO makes 300 times more, the company will pay 0.3%. The tax will be capped at 0.6%.