Limit Compensation of Healthcare Executives Initiative

Type: Citizen-initiated state statute
Subject: Business;Healthcare governance
Election: June 2, 2026 statewide primary

Overview

Create a compensation limit for CEOs, executives, administrators, and managers of healthcare corporations

Measure Design

See also: Text of measure Click on the following sections for summaries of the different provisions of the ballot measure. Expand All Compensation limit The initiative would establish a $450,000 limit on compensation for executives and managers of private hospitals, private physician groups, hospitals or medical entities owned or operated by nonprofit organizations, and public hospitals owned by special districts. The initiative would exclude county-operated hospitals and physician groups with fewer than 25 employees. The limit would also apply to executives operating under contracts or subcontracts that are not formally employees of the organization. It would not apply to medical professionals providing medical services, research, patient care, or other non-managerial, non-executive, and non-administrative services. [1] The limit would be adjusted annually by either 3.5% or the year-over-year rate of change in the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W), whichever is lower. The limit would apply to total annual compensation and include wages, salary, paid time off, bonuses, incentive payments, cash payments, fair market value of loans, cash value of housing, company cars, use of corporate aircraft, scholarships, fellowships, cash value of dependent care or adoption assistance, cash value of stock options or awards, and severance payments. It would not include organization contributions for the cost of health or disability insurance or health reimbursement and savings accounts. [1] Reporting requirements The initiative would require nonprofit corporations that own or operate hospitals or medical entities and for profit entities to report within nine months of the close of their fiscal years to the California Attorney General the names, positions, and compensation (wage and nonwage) for persons performing executive, managerial, or administrative work that received total compensation greater than the $450,000 limit. The initiative would authorize the attorney general to assess fees on the reports to cover the administrative costs of enforcing the law. [1] Enforcement and penalties The initiative would authorize any state taxpayer to sue for a violation of the compensation limit. The initiative would require taxpayers to notify the attorney general of their violation and intent to sue. If the attorney general brings a civil action against the same violation within 60 days of receiving notice, the taxpayer would be prohibited from seeking further legal action against the violation. [1] For nonprofit organizations that do not comply with the compensation limit, the state would be authorized to use the following penalties: [1] revoke their tax-exempt status, appoint a governing board member for a specified time, or impose a maximum fine of $100,000-$200,000 per violation. The attorney general would be authorized to impose a fine per violation on for-profit organizations or individuals that do not comply with the compensation limit. The maximum fines would range from $100,000 to $200,000 and would depend on the intentionality of the violation and the number of repeated violations. [1]

Ballot Title

The ballot title is as follows: “ Limits compensation for health care executives, managers, and administrators. Initiative statute. [2] ”

Petition Summary

The summary provided for inclusion on signature petition sheets is as follows: “ Prohibits certain hospitals and medical entities from paying executives, managers, and administrators more than $450,000 in total annual compensation (salary, paid time off, bonuses, stock options, company vehicle, etc.) or severance payments; compensation limit increases up to 3.5% annually based on Consumer Price Index. Requires annual reporting of all executives, managers, and administrators receiving compensation or severance packages exceeding limit. Authorizes enforcement by Attorney General or taxpayer litigation. Penalties for violations include fines, revocation of tax-exempt status, and appointment of Attorney General representative to board of directors of nonprofit corporations. [2] ”

Full Text

The full text of the ballot measure is below: [1]

Support

Service Employees International Union – United Healthcare Workers led the campaign in support of the initiative. [3]

Arguments

Service Employees International Union – United Healthcare Workers: “At a time when healthcare facilities across the country are facing massive federal budget cuts that threaten critical programs like Medicaid, healthcare workers say it’s more important than ever that every healthcare dollar be invested in providing quality patient care, not in multimillion-dollar executive pay packages. The initiative seeks to address the growing gap between excessive healthcare executive salaries and the realities faced by frontline workers and patients.”

Opposition

Ballotpedia has not located a campaign in opposition to the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org .

Opponents

Organizations California Hospital Association

Campaign Finance

See also: Ballot measure campaign finance, 2026 The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed , which covered through March 31, 2026 . The deadline for the next scheduled reports is July 31, 2026. Californians for Responsible Healthcare registered in support of the initiative and #25-0008 . It reported more than $13.9 million in contributions. Californians Against the Health Care Endangerment Act registered in opposition to the initiative. It reported $384,188.31 in contributions. [4] [5] Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures Support $0.00 $13,973,828.04 $13,973,828.04 $0.00 $13,973,828.04 Oppose $250,000.00 $134,188.31 $384,188.31 $0.00 $134,188.31 Total $250,000.00 $14,108,016.35 $14,358,016.35 $0.00 $14,108,016.35

Donors

The following were the top donors who contributed to the support committee. [4] Donor Cash Contributions In-Kind Contributions Total Contributions SEIU United Health Care Workers West Political Issues Committee $0.00 $13,973,828.04 $13,973,828.04

Path To The Ballot

See also: Laws governing the initiative process in California An initiated state statute is a citizen-initiated ballot measure that amends state statute. There are 21 states that allow citizens to initiate state statutes, including 14 that provide for direct initiatives and nine (9) that provide for indirect initiatives (two provide for both). An indirect initiated state statute goes to the legislature after a successful signature drive. The legislatures in these states have the option of approving the initiative itself, rather than the initiative appearing on the ballot. In California, the number of signatures required for an initiated state statute is equal to 5% of the votes cast in the last gubernatorial election. A simple majority vote is required for voter approval. The requirements to get initiated state statutes certified for the 2026 ballot: Signatures : 546,651 valid signatures are required. Deadline : The deadline for signature verification is June 25, 2026. However, the secretary of state suggested deadlines for turning in signatures of January 12, 2026, for initiatives needing a full check of signatures and April 17, 2026, for initiatives needing a random sample of signatures verified.

Sources

• Ballotpedia — measure detail page
• Upstream: https://ballotpedia.org/California_Limit_Compensation_of_Healthcare_Executives_Initiative_(2026)