Dueling S.F. Ballot Measures Pit Unions Against Business Leaders

Labor groups and business advocates submit competing proposals to tax large companies with highly paid executives

Jan. 30, 2026 at 6:39pm by Ben Kaplan

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Labor unions and San Francisco's business community are set to clash over two competing ballot measures that would raise taxes on large companies with highly paid executives. The union-backed "Overpaid CEO Act" aims to generate revenue for city health services, while the business-backed proposal would accelerate existing tax increases and offer protections for small businesses. Both sides failed to reach a compromise, and the measures will now go before voters in June.

Why it matters

The impending battle highlights the ongoing tensions between labor and business interests in San Francisco, as the city grapples with a budget deficit and the economic fallout from the pandemic. The outcome could have significant implications for the city's tax policies, the financial burden on large companies, and the ability of small businesses to weather the economic challenges.

The details

The labor groups' "Overpaid CEO Act" would raise city taxes on businesses with executives earning more than 100 times the median pay of their employees. The business-backed measure would make more modest changes to the same tax, which voters approved in 2020 and then voted to lower by 80% in 2024. Organizers for the union-backed initiative estimate their proposal could bring in about $200 million annually, while business leaders warn it could drive companies out of San Francisco and harm small businesses.

  • The two groups submitted petitions with more than 20,000 signatures each on Friday, January 30, 2026, to qualify their measures for the June 2 ballot.
  • In 2020, San Francisco voters approved the "overpaid executive" tax, which applies to large companies with top leaders that make more than 100 times the median pay of their employees based in the city.
  • In 2024, San Francisco voters agreed to lower the "overpaid executive" tax by 80%.

The players

Labor Groups

Labor unions and advocacy groups pushing for the "Overpaid CEO Act" ballot measure to raise taxes on businesses with highly paid executives.

San Francisco Business Community

Business leaders and advocacy groups, including the Chamber of Commerce, that are opposing the labor-backed measure and pushing a more modest tax increase proposal of their own.

Mayor Daniel Lurie

The mayor of San Francisco who had hoped to avoid the messy, costly campaign between the two sides and encouraged them to reach a compromise.

Wade Rose

The president of the coalition behind the business-backed ballot measure.

Scott Mann

A spokesperson for the campaign supporting the labor-backed "Overpaid CEO Act" measure.

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What they’re saying

“They will spend millions upon millions of dollars attacking each other in June and dividing our city again.”

— Daniel Lurie, Mayor of San Francisco (San Francisco Chronicle)

“We do believe that our measure is the only real solution to helping ensure that these programs and services are really protected.”

— Scott Mann, Spokesperson for the "Overpaid CEO Act" campaign (San Francisco Chronicle)

“The city has zero competitive margin for attracting and maintaining businesses. We can't make it worse.”

— Wade Rose, President of the coalition behind the business-backed measure (San Francisco Chronicle)

What’s next

If the groups' petitions are approved by the city's Election's Department, voters will have the final say on the competing ballot measures on June 2, 2026.

The takeaway

The battle over these dueling ballot measures highlights the ongoing tensions between labor and business interests in San Francisco, as the city grapples with a budget deficit and the economic fallout from the pandemic. The outcome could have significant implications for the city's tax policies, the financial burden on large companies, and the ability of small businesses to weather the economic challenges.