Actually, the current Internal Revenue Code contains something similar: salaries above $1 million for business executives (or any other employees, for that matter) are not deductible to the business. Another provision could be added to the Code saying that executive salaries above, say, 50 times the average salary of employees are not deductible to the business. That's hardly the cap that the original poster was calling for, but I see your point. How about this: we just remove the deduction limit entirely?