Gavin Newsom establishes direct contact with 100 CEOs amid corporate exodus
- Governor Gavin Newsom initiated a plan to strengthen ties with business leaders by providing them with cellphones programmed with his direct line.
- This strategy was developed during a time when many companies were leaving California for more business-friendly states such as Texas.
- The outreach has received positive feedback from company executives and aims to improve relations between the state and private sector.
In a bid to strengthen relationships with the private sector, California Governor Gavin Newsom implemented a unique strategy that involved sending cellphones pre-programmed with his direct line to approximately 100 leaders of companies based in California. This initiative was accompanied by personal notes from Newsom, in which he emphasized his availability to assist the business leaders whenever required. According to his communications director, Izzy Gardon, the feedback from company executives has been overwhelmingly positive, facilitating constructive interactions between the governor and the business community. This strategic move comes at a challenging time for California, where many prominent corporations have chosen to relocate their operations to other states in search of favorable business conditions. Elon Musk, the CEO of several multi-billion dollar companies, including Tesla and SpaceX, is one of the notable figures who have moved operations out of the state, citing regulatory and cost issues as motivations for this departure. In addition to Musk, a notable list of companies such as Oracle, Hewlett-Packard Enterprise, and Realtor.com have also disengaged from California recently. Since January 2019, a staggering count of 304 companies have left the state as highlighted in a 2021 report by the California Policy Center. This mass corporate exodus is significant, contributing to an estimated $24 billion in lost income for California. The trend underscores the growing concern among state officials regarding their ability to retain businesses amid increasing competition from states like Texas, known for its corporate-friendly environment. Governor Newsom's proactive approach to maintaining open lines of communication with corporate leaders reflects an urgent response to the economic challenges posed by this corporate outflow. By establishing these direct channels, he aims to foster a collaborative atmosphere that could potentially reverse the trend of businesses abandoning the state. As the economic landscape continues to evolve, it remains to be seen whether such measures will yield long-term benefits for California's business climate.