Steinitz Seeks to Veto Salary Caps

The Ministerial Committee for Legislation is scheduled to vote today on a draft bill designed to decrease the wage gaps in Israel's economy by capping executive salaries, and one of its main opponents is the finance minister himself.

The bill is backed by MKs Shelly Yachimovich (Labor) and Haim Katz (Likud).

Under the bill, executives at publicly-held companies could not earn more than 50 times what their lowest-paid workers earn, unless they receive special permission from the industry and trade minister.

Also, companies will not be able to claim deductions for tax purposes for any wage payments beyond the 50-salary cap.

TheMarker surveyed the committee members and found that eight ministers support the proposal and three oppose it, including Finance Minister Yuval Steinitz. Another six declined to answer.

If some of these six decide to vote in favor today, the first day of the Knesset summer session, Knesset sources say there is also likely to be a majority in the plenum.

If the bill passes the ministerial committee, Steinitz is allegedly planning to petition the cabinet as a whole, which would then have to vote on the bill within the next two weeks.