San Francisco voters appeared to reject a ballot measure that would have significantly increased taxes on some large companies with highly paid executives, delivering a win for business groups and technology leaders who argued the proposal could hinder the city’s economic recovery.

According to results posted by the San Francisco Department of Elections, Measure D was failing with 53.64% of voters opposed and 46.36% in favor. The measure required a simple majority to pass.

Measure D would have expanded San Francisco’s existing CEO pay ratio tax, which applies to certain large businesses when a top executive earns more than 100 times the median compensation of workers. The proposal would have changed the formula by comparing executive pay with a company’s entire workforce rather than only its San Francisco employees, while also increasing tax rates on affected businesses.

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Voters cast their ballots at a polling location inside City Hall during a primary election in San Francisco on Tuesday, June 2, 2026. (Jason Henry/Bloomberg via Getty Images / Getty Images)

City officials estimated the measure would generate between $250 million and $300 million in annual revenue. Supporters said the proposal would help address income inequality while providing additional funding for city services.

Opponents, including Mayor Daniel Lurie, argued the measure could drive employers away from San Francisco and make the city less competitive as officials work to revive downtown and attract new investment.

Voters cast their ballots at a polling location at City Hall during a primary election in San Francisco, California, on Tuesday, June 2, 2026. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

The proposal also faced opposition from prominent technology executives, including Google co-founder Sergey Brin, who donated $500,000 to a committee campaigning against the measure.

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The outcome adds to a series of election results that suggest San Francisco voters have shifted toward a more centrist approach on economic and governance issues. In recent years, voters recalled former District Attorney Chesa Boudin, removed three school board members and elected Lurie, a moderate Democrat who campaigned on public safety and economic recovery.

Election workers process mail-in ballots at the Department of Elections at City Hall during a primary election in San Francisco on Tuesday, June 2, 2026. (Jason Henry/Bloomberg via Getty Images / Getty Images)

The vote comes as San Francisco seeks to capitalize on an artificial intelligence-driven investment boom while continuing to confront concerns about its business climate and the departure of several high-profile companies and entrepreneurs in recent years.

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The defeat of Measure D is likely to be viewed by business advocates as a sign that voters remain focused on economic growth, job creation and efforts to strengthen the city’s competitiveness.

FOX Business’ Eric Revell contributed to this report.