One night last year, as the public debate about economic inequality began to sharpen, California State Senator Mark DeSaulnier D-Concord was walking to the Berkeley premiere of a documentary film focused on that very subject. Inequality for All, narrated by former U.S. Labor Secretary Robert Reich, had been executive-produced by the man DeSaulnier was walking with that evening, Stephen M. Silberstein. At the time, DeSaulnier was casting about for ways to attack economic inequality and during their walk Silberstein, a software entrepreneur and philanthropist, mentioned an idea he’d been working on to help tackle the problem.
Until the 1980s, corporate CEOs were paid 30 times the amount the average worker received, but today, according to some conservative estimates, they make about 330 times that. What if, Silberstein proposed, state corporate taxes were tied to a company’s annual CEO compensation relative to its employees’ wages?