"NO on Measure D" campaign poster on a wet San Francisco sidewalk.
San Francisco voters have seemingly rejected Measure D, a ballot measure that aimed to increase taxes on large companies with highly paid executives. This outcome marks a victory for business groups and tech leaders who had argued the proposal could hinder the city’s economic recovery efforts.
Preliminary results from the San Francisco Department of Elections show that 53.64% of voters opposed Measure D, with 46.36% in favor. The measure required a simple majority to pass.
Measure D proposed expanding the city’s existing CEO pay ratio tax. This tax currently applies to large businesses where a top executive earns over 100 times the median compensation of their workers. The measure would have altered the calculation to compare executive pay against the company’s entire workforce, not just San Francisco employees, and would have increased tax rates for affected businesses.
City officials had estimated that Measure D could generate between $250 million and $300 million annually. Supporters contended that the revenue would help address income inequality and fund essential city services.
However, opponents, including Mayor Daniel Lurie, voiced concerns that the measure could drive businesses away from San Francisco, potentially making the city less competitive as it works to revitalize its downtown and attract new investments. Prominent tech figures, such as Google co-founder Sergey Brin, actively campaigned against the measure, with Brin contributing $500,000 to the opposition.
The rejection of Measure D aligns with a recent trend of San Francisco voters leaning towards more centrist economic and governance policies. This follows previous recall elections and the election of moderate Democrats focused on public safety and economic recovery.
As San Francisco attempts to capitalize on the artificial intelligence boom, the defeat of this tax measure may signal that voters are prioritizing economic growth, job creation, and the city’s overall competitiveness.
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