Senator DeSaulnier Statement on CEO Compensation Bill
Earlier this week, Senator Mark DeSaulnier (D-Concord) announced amendments to SB 1372 to address the growing disparity between CEO and worker pay, while also providing funding to retain California companies and attract new businesses.
SB 1372 creates a new corporate tax table that decreases taxes for employers with sensible differences between CEO and worker pay, and increases taxes on companies with large disparities between CEO and worker pay. New amendments to SB 1372 require excess funds generated by this new corporate tax table be used by the Governor's Office of Business and Economic Development (Go-Biz) to offer tax credits through the California Competes Tax Credit to companies that want to come to or stay and grow in California. These funds would only be available to companies in which the CEO makes no more than 100 times of the median worker salary.
The bill failed to garner the necessary votes to pass off the Senate Floor today.
“We listened to opposition and amended SB 1372 to ensure that any revenue generated by adjusting the corporate tax table would be reinvested in California companies,” Senator DeSaulnier said. “Funds generated by SB 1372 would have been aimed directly at retaining California companies or attracting new businesses with reasonable CEO pay to our state. Additionally, a quarter of this extra revenue would be dedicated to tax credits for small businesses. This bill would have helped stimulate economic development and keep good jobs in California.”