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I recommend that CEO Pay and Minimum Wages be linked together. Companies are free to pay this Directors, CEOs, Top executives whatever they feel like. All compensation including stock options and fringe benefits should be converted into a single monetary value (something most companies do today!)

Companies face no wage equality fee for upto 300 times of federal minimum wages. That's $4.524 million/year. Above $4.524 million, companies have to pay 35% fee on the difference between total pay and $4.524 million. As federal mimimum wages increases, so will this limit for CEO pay.

Also, paying the fee will not receive any tax advantage. Let's say that the revenue of Company A is $100 million and it wants to pay it's CEO a salary of $5.524 million and no other executive has a pay above $4.524 million. Also, let's assume that the company made a $5 million profit for the year before tax. The company will pay 350,000 as wage equality fee and $1.75 million as Income Tax

If Minimum wages become $11/hr, wage equality fee kicks in only at $6.864 million. So isn't there an incentive for CEOs to push for higher wages?


Do you think we need to have CEO pay linked to federal mimimum wages

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