Exxon Just Decided to Ditch New Jersey for Texas. Here’s the Real Reason Why.
The move would make Exxon the latest high-profile company to move to the Lone Star State.
Everything’s bigger in Texas, including the list of Fortune 500 companies calling it home. Exxon Mobil wants to abandon its corporate registration in New Jersey and redomicile in Texas, where its headquarters is located, the oil giant announced Tuesday. If approved by shareholders, Exxon would join SpaceX, Tesla, and Coinbase in registering in the business-friendly Lone Star State.
Sure, the BBQ and the lack of state income tax don’t hurt. But the real draw? Legal protection from shareholder lawsuits. A new Texas law makes it harder for shareholders to sue companies by requiring a minimum stock ownership to file lawsuits
“The Board believes Texas legislators, judges, and juries who might make decisions that impact Exxon Mobil are generally more familiar with our business and operations,” the company said in a regulatory filing. Exxon’s roots in New Jersey trace back to its formation after the breakup of Standard Oil in the early 1900s, though its headquarters has been in Texas since 1989.
Everything’s bigger in Texas, including the list of Fortune 500 companies calling it home. Exxon Mobil wants to abandon its corporate registration in New Jersey and redomicile in Texas, where its headquarters is located, the oil giant announced Tuesday. If approved by shareholders, Exxon would join SpaceX, Tesla, and Coinbase in registering in the business-friendly Lone Star State.
Sure, the BBQ and the lack of state income tax don’t hurt. But the real draw? Legal protection from shareholder lawsuits. A new Texas law makes it harder for shareholders to sue companies by requiring a minimum stock ownership to file lawsuits
“The Board believes Texas legislators, judges, and juries who might make decisions that impact Exxon Mobil are generally more familiar with our business and operations,” the company said in a regulatory filing. Exxon’s roots in New Jersey trace back to its formation after the breakup of Standard Oil in the early 1900s, though its headquarters has been in Texas since 1989.
