San Francisco voters appear to have rejected a ballot measure that would have dramatically expanded taxes on large companies with highly compensated executives, handing a significant victory to business groups, technology leaders, and city officials who warned the proposal could undermine the city’s economic recovery efforts.
According to results released by the San Francisco Department of Elections, Measure D was trailing with 53.64 percent of voters opposed and 46.36 percent in favor. Because the measure required only a simple majority to pass, the results effectively signaled its defeat.
The proposal sought to expand San Francisco’s existing CEO pay ratio tax, which currently applies to certain businesses when a chief executive earns more than 100 times the median compensation of workers. Measure D would have substantially broadened that framework by comparing executive compensation against a company’s entire workforce rather than only employees located in San Francisco. It also would have increased tax rates for companies falling under the policy.
Supporters argued the measure would address widening income disparities while generating a substantial new source of revenue for city programs. City estimates projected that Measure D could have produced between $250 million and $300 million annually.
But opponents framed the proposal very differently.
Business organizations, economic development advocates, and Mayor Daniel Lurie warned that raising taxes on employers at a time when San Francisco is still struggling to recover from years of economic challenges could discourage investment and encourage companies to expand elsewhere.
That argument appears to have resonated with a majority of voters.
The campaign against Measure D attracted support from several high-profile figures in the technology industry. Among the most notable was Google co-founder Sergey Brin, who contributed $500,000 to efforts opposing the measure.
For many business leaders, the concern was less about the tax itself and more about the message it would send to companies weighing whether to invest, hire, or expand in San Francisco.
The outcome also fits into a broader political trend that has emerged in the city over the past several years.
Once viewed as one of the nation’s most reliably progressive political environments, San Francisco voters have increasingly backed candidates and policies emphasizing public safety, government accountability, and economic growth. Voters recalled former District Attorney Chesa Boudin, removed multiple school board members, and elected Mayor Lurie, a moderate Democrat who campaigned heavily on restoring confidence in city government and improving conditions for businesses and residents alike.
The rejection of Measure D may be the latest indication that voters remain concerned about maintaining San Francisco’s economic competitiveness.
That concern comes at a critical moment for the city. San Francisco is attempting to position itself at the center of the rapidly expanding artificial intelligence industry while also dealing with lingering challenges that include vacant office space, population declines, and the departure of several major companies and entrepreneurs in recent years.
Supporters of the measure viewed it as a way to generate new revenue and address economic inequality. Opponents argued it risked making an already challenging business environment even less attractive.
Based on the election results, voters appear to have sided with the latter argument.
