ExxonMobil’s Board of Directors recommended redomiciling from New Jersey to Texas due to the latter’s friendlier business environment.
Redomiciling means transferring a corporation’s legal home from one jurisdiction to another without creating a new legal entity or interrupting any business operations.
The board cited Texas’s “legal and regulatory environment.” For example, the Texas Business Court makes it easier for companies “to resolve complex disputes efficiently.”
“Over the past several years, Texas has made a noticeable effort to embrace the business community. In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value,” said Darren Woods, ExxonMobil chairman and chief executive officer. “Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”
It also makes sense to move everything to Texas since the state has housed ExxonMobil’s headquarters since 1989, employing 75% of the company’s U.S. workers.
ExxonMobil’s press release noted that most of the activities outside of business operations happens in Texas, such as academic recruiting, operational footprint, and U.S. focused philanthropic efforts.
Why stay in New Jersey except for tradition sake? The Board of Directors haven’t even held a meeting in New Jersey in 40 years.
“Freed from the stranglehold of over-regulation, Texas is where global brand leaders thrive and jobs for hardworking Texans grow,” said Texas Governor Abbott. “I thank ExxonMobil for their decision to redomicile in Texas and for their long-standing partnership with our state. With this decision, Texas will further dominate the corporate landscape and ensure our economic growth reaches new heights.”
The shareholders have to vote on the move.
New Jersey attempted to sue fossil fuel companies like ExxonMobil and Chevron over climate change.
The state claimed the companies tried to confuse people over connections between burning fossil fuels and climate change.
A judge dismissed the lawsuit in February.
“Only federal law can govern Plaintiffs’ interstate and international emissions claims because ‘the basic scheme of the Constitution so demands,’” wrote State Superior Judge Douglas Hurd. “Therefore, Plaintiffs’ complaint is hereby dismissed with prejudice for failure to state a claim.”
But man of man. Companies keep bolting blue states for red states.
On Tuesday, Mike wrote about Yamaha leaving California for Georgia.
Chevron, a staple in California, packed up and moved to Texas due to a better business environment.
Valero actually took a huge hit just to leave California.
Elon Musk moved SpaceX and Tesla to Texas. This guy on X listed all the companies that fled Commiefornia:
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