San Francisco Voters to Decide on 'Overpaid CEO Act' Tax Measure

Proposition D would increase taxes on companies with highly paid executives, generating funds for city services

Mar. 14, 2026 at 10:55pm by Ben Kaplan

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Hundreds of union members in San Francisco have launched a voter drive for Proposition D, the Overpaid CEO Act, which proposes strengthening a tax on companies with more than 1,000 employees and $1 billion in annual revenue whose top executives make more than 100 times the median pay of their San Francisco employees. Supporters say the measure would generate over $200 million per year for the city's general fund to support mental health programs, public hospitals, and emergency response services. However, opponents, including the city's mayor and Chamber of Commerce, argue the tax would harm San Francisco's economic recovery.

Why it matters

The Overpaid CEO Act is being proposed as a way to generate additional revenue for city services amid a projected $1 billion budget deficit, which is expected to be exacerbated by cuts to federal funding. Supporters argue the tax is necessary to protect public health and social programs, while opponents warn it could drive businesses out of the city and further destabilize the local economy.

The details

The initiative would increase the gross receipts tax rate on CEOs making over 100 times their median employee's pay from 0.129% to 1.121%. Supporters say this could generate over $200 million annually for the city's general fund. Opponents argue the tax is a "poison pill" that would discourage business investment and harm small businesses that rely on a strong local economy.

  • The voter drive for Proposition D kicked off on Saturday, March 14, 2026 at the International Brotherhood of Electrical Workers 2015 Union Hall in San Francisco.
  • Voters will decide on Proposition D in the June 2, 2026 election.

The players

Stand Up for SF

The coalition advocating for the Overpaid CEO Act ballot measure.

Daniel Lurie

The mayor of San Francisco, who opposes the Overpaid CEO Act and is instead backing a separate ballot measure to raise the signature threshold for non-charter ballot measures.

San Francisco Chamber of Commerce

The organization that called the Overpaid CEO Act a "poison pill" to the city's economic recovery.

Timothy Omi

The president of the San Francisco Council of District Merchants Associations, who supports the competing Prop C measure over the Overpaid CEO Act.

Brittany Hewett

A nurse at San Francisco General Hospital who is concerned about the potential impact of budget cuts on the hospital and city services.

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What they’re saying

“Right now the city is facing a billion-dollar deficit. This is the only solution being presented to voters to protect programs and services from being cut.”

— Scott Mann, Spokesperson, Stand Up for SF

“While its intent may be framed otherwise, we feel the practical impact could be to discourage business investment, destabilize major employers, and create unintended ripple effects that would harm the small businesses that depend on a strong and active local economy.”

— Timothy Omi, President, San Francisco Council of District Merchants Associations

“I do not want a ballot measure. I simply think that it is not the right path for our city at this time.”

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

“Silicon Valley billionaires and the wealthiest corporations are already spending $10 million trying to defeat it. They would rather spend millions of dollars protecting their pennies than contribute a small share to protect hospitals, mental health services, homelessness prevention programs, home care — all of these things are at the heart of our city's recovery.”

— Kim Evon, Executive Vice President, SEIU Local 2015

“I'm very concerned not just for the hospital, but for the services across the city.”

— Brittany Hewett, Nurse, San Francisco General Hospital

What’s next

Should voters approve both the Overpaid CEO Act (Prop D) and the competing Small Business and Economic Recovery Act (Prop C) on June 2, 2026, only the measure with the most votes would take effect.

The takeaway

The Overpaid CEO Act ballot measure highlights the tension between generating revenue for essential city services and concerns about the potential economic impacts of raising taxes on large businesses. The outcome of the vote will shape San Francisco's approach to addressing its budget deficit and supporting the city's recovery.