PRESS RELEASE

​​​​PR26-91
FOR IMMEDIATE RELEASE
June 25, 2026
Contact: sospress@sos.ca.gov

California Secretary of State Shirley N. Weber, Ph.D., Announces Proponents Withdraw Initiative to Limit Compensation for Health Care Executives, Managers, and Administrators  

Sacramento, Calif. – California Secretary of State Shirley N. Weber, Ph.D. announced today that an initiative eligible for the November 3, 2026, General Election ballot has been withdrawn by the proponents.  

The Attorney General's official title and summary of the measure is as follows:  

LIMITS COMPENSATION FOR HEALTH CARE EXECUTIVES, MANAGERS, AND ADMINISTRATORS. INITIATIVE STATUTE. 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. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State cost as much as several million dollars annually to enforce the new limit on pay for administrators at affected hospitals and physician groups, mostly covered by fees charged to the affected entities. (25-0009A1.) 

Pursuant to Elections Code section 9604(b), proponents may withdraw an initiative at any time before the Secretary of State certifies it as qualified. 

The proponents of the initiative are Shelbi N. Augustus and Jonathan Everhart. The address of the proponents is c/o George M. Yin, Kaufman Legal Group, 445 S. Figueroa Street, Suite 2400, Los Angeles, CA 90071. The proponents may also be contacted at gyin@kaufmanlegalgroup.com and (213) 452-6565. 

For more information about how an initiative qualifies for the ballot in California, visit https://www.sos.ca.gov/elections/ballot-measures/how-qualify-initiative/. 

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