California Governor Gavin Newsom is facing criticism after a private event involving a list of CEOs, his sister who manages his business interests, and a global leadership organization was held at the Governor's Mansion. Calendars obtained by The California Post indicate the March 26 gathering included members of the Young Presidents' Organization (YPO), a network primarily for CEOs and business leaders, and Newsom's sister, Hilary Newsom Callan, who oversees his PlumpJack Group business. The event has prompted concerns from Republicans about the potential for blurring the lines between public duties and private business interests.
State Republican Party Chairwoman Corrin Rankin stated that Newsom owes Californians an explanation regarding his sister's involvement in meetings with major business leaders, emphasizing that the separation between public service and private family interests should be clear. Newsom, who launched PlumpJack before entering politics, has stated he put his ownership interests into a blind trust managed by a family friend upon taking office in 2019. He also issued an executive order barring state agencies from doing business with PlumpJack. His office maintains that the trust manager is legally prohibited from sharing business information with him.
Newsom's office declined to provide details about the March 26 event, including who attended, what was discussed, or the specific role his sister played. A spokesperson for the governor, Diana Crofts-Pelayo, said that Newsom has participated in YPO events for years and that these meetings are a routine part of his responsibilities as governor. She dismissed suggestions of a conflict of interest as "patently absurd."
Hilary Newsom Callan also stated that YPO has no connection to PlumpJack and that the governor's businesses are in a blind trust. She asserted that she does not communicate with her brother about those matters.
While blind trusts are generally considered strong tools for mitigating conflicts of interest, ethics experts note that public perception remains important, especially when close family members are involved in operating businesses linked to a politician. Dan Schnur, a professor of political communications, commented that while the event itself may not be inherently problematic, the governor's office's lack of transparency in explaining the sister's presence at a CEO networking event at the Governor's Mansion raises questions. Schnur suggested that more forthcoming communication could have helped defend the actions, whereas evasiveness may lead to negative perceptions.