I feel like only being able to pay say 10 times the lowest paid employee or contractor would be more effective. If the janitor makes 40k, the boss can make up to 400k. That way you wouldn’t have situations where there is a high average pay, but that’s all in the highest levels of management and maybe a few key personnel while everyone else struggles to make rent.
Using average comes with the trouble that if Jeff Bezos walks into the room, everyone in that room is on average a billionaire even if all by one is hundreds of thousands in dept.