[philyg]

To those who say it will disincentivise companies from new companies being found in SF: Perhaps we are in a situation where CEOs expect to be paid 100 times more than the median pay but this should not be so. In what world is this uneven distribution fair? Legislation more frequently should be bold like this and aim to create a world that is better as opposed to being dictated by immediate side effects. Perhaps it will take a long time for this legislation to become nationwide and perhaps fewer startups will be created in SF, but someone should lead the way in trying to create a fairer world.

If companies wish to renumerate their CEOs more highly they should do so by also increasing the pay of the rest of their workers as this piece of legislation encourages. Sharing the benefits of good performance with the employees may have positive flow on effects as employees may feel rewarded for their positive work and consequently feel more motivated to continue working hard. Additionally it increases the sense of fairness and trust in the economic system and perhaps in society as well as more people that work hard reap the benefits of their work.

Overall this of legislation in my opinion is a good first step towards making employee owned businesses a more widely adopted model and creating a more equitable economic system.

EDIT: discouraging excessive payouts to CEOs, encourages directing that capital back into the company. Large corporate payouts do take away money that the company generated (not only the CEO) and I think this legislation recognises that CEOs also need to be held more accountable (in terms of renumeration) to the companies they lead as large renumeration is not always in the company's best interest (even when performing well)