ExxonMobil's board of directors has recommended that the company move its corporate registration from New Jersey to Texas.
If ExxonMobil’s shareholders approve the change, it will align the oil and gas giant's corporate registration with the location of its physical headquarters, which is north of Houston in Spring.
“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," ExxonMobil chairman and CEO Darren Woods said in a news release. “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."
According to reporting from Reuters, the move could shield the company from legal action from activist investors, due to Texas state law allowing corporations to establish stock ownership thresholds for who's allowed to sue.
In a statement, the company said it has no plans to reduce shareholder rights.
"Texas is our home — it reflects where we've operated and made decisions for decades, aligning our legal structure with how the business truly runs," company spokesperson Curtis Smith said. "We have no plans to adopt any statutory or legal provisions that would reduce shareholder rights relative to New Jersey. Our focus remains on growing and safeguarding shareholder value — a principle that guides every decision we make and sits at the core of our strategy."
Texas Gov. Greg Abbott praised ExxonMobil's decision to redomicile in the state.
"Freed from the stranglehold of over-regulation, Texas is where global brand leaders thrive and jobs for hardworking Texans grow," Abbott said in a news release. "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."
