California Limit Compensation of Healthcare Executives Initiative (2026)
| California Limit Compensation of Healthcare Executives Initiative | |
|---|---|
 | |
| Election date November 3, 2026 | |
| Topic Business regulations | |
| Status Cleared for signature gathering | |
| Type State statute | Origin Citizens |
The California Limit Compensation of Healthcare Executives Initiative (#25-0009) may appear on the ballot in California as an initiated state statute on November 3, 2026.
The initiative would create a fair compensation limit for CEOs, executives, administrators, and managers of healthcare corporations. The fair compensation limit would begin as $450,000, and increase annually by 3.5% or the yearly cost-of-living increase. Under the initiative, compensation would include salaries, bonuses, and some benefits.[1]
Text of measure
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 initiative can be read here.
Path to the ballot
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.
Initiative #25-0009
- July 15, 2025: Shelbi N. Augustus and Jonathan Everhart filed the initiative with the California Attorney General's Office.[1]
- August 1, 2025: The Attorney General's Office published the initiative, issued it a serial number, and placed it under official review.[3]
- October 8, 2025: The initiative was cleared for signatue gathering.
- November 12, 2025: The secretary of state reported the campaign had collected at least 25% of signatures required.[4]
See also
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External links
Footnotes
- ↑ 1.0 1.1 Attorney General Information: Initiative and Referendum Proposals Pending Review By Attorney General, "25-0009: Health Care Executive Compensation Act of 2026," accessed August 4, 2025
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ California Secretary of State, "Attorney General Information: Initiative and Referendum Proposals Pending Review By Attorney General," accessed August 4, 2025
- ↑ California Secretary of State, "Circulating Initiatives with 25% of Signatures Reached," accessed November 12, 2025
