Exclusive | Gavin Newsom’s CEO mansion summit with business partner sister raises eyebrows

Gov. Gavin Newsom and his sister Hilary Newsom Callan — who runs his business empire – met with a secretive list of CEOs at the Governor’s Mansion this spring, according to records obtained by the California Post.

The little-known gathering has raised concerns as Newsom has promised not to intermingle state affairs with his business interests at the PlumpJack Group, which is managed by his sister and held in a blind trust overseen by a family friend.

Along with the Newsoms, the March 26 event featured Dee Dee Myers, director of the Governor’s Office of Business and Economic Development, and the Young Presidents’ Organization, a global leadership network whose membership is limited primarily to CEOs and business leaders.

Calendars exclusively obtained by The Post after a months-long records battle show the governor received a five-minute briefing before a lunchtime event with YPO and “Hilary.”

An attendee posted photos of the March 26 event at the Governor’s Mansion in Sacramento on LinkedIn, and they appear to show Newsom sitting next to his sister for a panel discussion.

The governor has repeatedly touted the extensive ethics measures he put in place after taking office in 2019 to distance himself from PlumpJack, which includes wineries, hotels, restaurants and retail businesses across California. Earlier this year, The Post found that he spent more than $50,000 in campaign donor money on PlumpJack wines.

State Republican Party Chairwoman Corrin Rankin said the newly disclosed meeting raises legitimate questions.

“Newsom owes Californians a clear explanation about why his sister, who helps run the family business, was involved in meetings with major business leaders,” Rankin said.

“The line between public duties and private family interests should never be blurred.”

At the start of his administration, Newsom transferred his ownership interests into a blind trust overseen by Shyla Hendrickson, a family friend who is an attorney and certified public accountant, and he signed an executive order prohibiting executive branch agencies from doing business with PlumpJack. 

His office has long maintained that the Hendrickson is legally prohibited from sharing business information with the governor, insulating him from potential conflicts involving his family’s company.

But similar to his sneaky release of tax returns last week to a select group of media outlets, Newsom’s office is refusing to provide more information on the March 26 meeting.

The governor’s office declined to answer The Post’s questions on who attended the meeting, what was discussed, whether any of the CEOs have business ties to PlumpJack or what role the governor’s sister played in the event.

Diana Crofts-Pelayo, a spokesperson for Newsom, said that the governor has participated in Young Presidents’ Organization events for years and dismissed questions about the gathering.

“It has nothing to do with any business held in his blind trust,” Crofts-Pelayo said. “Any suggestion that there is a conflict of interest or ethical concern about this event is patently absurd.”

She added that meeting with business leaders is a routine part of the governor’s responsibilities.

“As governor, he meets throughout the year with CEOs, business leaders, local officials, legislators, unions, nonprofits, and public citizens alike,” she said. “That’s his job.”

The governor’s sister also rejected any suggestion that the event involved the family’s business interests, while declining to answer specific questions.

“YPO has nothing to do with PlumpJack, and the governor’s businesses are held in a blind trust,” Newsom Callan wrote in an email to The Post. 

“I do not communicate with him about those matters.”

Officials for the Young Presidents’ Organization did not respond to a request for comment.

Government ethics experts have generally viewed blind trusts as one of the strongest tools for reducing conflicts of interest, because public officials relinquish knowledge and control over assets while in office. 

But ethics experts have also noted that public perception can remain important, particularly when close family members continue operating businesses associated with a politician.

Dan Schnur, a professor of political communications at USC and UC Berkeley, told The Post that “none of this at face value represents anything nefarious.”

However, he did question why the governor’s office isn’t being more transparent in explaining why the governor’s sister needed to be at a CEO networking event at the Governor’s Mansion.

“It would seem logical that they would be willing to speak publicly in defense of these actions,” Schnur said.

“But not being more forthcoming simply makes them look evasive.”

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