ExxonMobil announced that its board unanimously suggested shareholders approve changing the company’s legal domicile from New Jersey to Texas. The company is already headquartered in the Lone Star State.
The announcement cited Texas’ friendly business environment, including its creation of the new business courts.
“In making its recommendation, the Board considered Texas’ legal and regulatory environment, including its modernized business statutes and the Texas Business Court, which is designed to resolve complex disputes efficiently,” reads the announcement. “When corporate decisions are challenged, Texas courts are required to apply clear, statute based standards, which support sound decision-making.”
Darren Woods—ExxonMobil chairman and chief executive officer—added that “[o]ver 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 is a Fortune 500 and Global 500 company, and is one of the largest publicly traded international energy and petrochemical companies.
The company traces its Texas lineage back to 1911, when Texas entrepreneurs chartered Humble Oil Company, which operated on the Gulf Coast and in East Texas.
According to the announcement, “ExxonMobil’s connection to New Jersey is largely historical, dating back to the 1882 incorporation of Standard Oil of New Jersey. The company’s Board of Directors has not held a meeting in New Jersey for more than 40 years.”
In 1989, ExxonMobil moved its headquarters to Dallas-Fort Worth before settling in Spring, Texas. Today, the state serves as the center of the company’s executive leadership, corporate functions, major research facilities, and U.S. workforce.
“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,” said Woods.
Gov. Greg Abbott quickly released a statement celebrating the announcement.
“Freed from the stranglehold of over-regulation, Texas is where global brand leaders thrive and jobs for hardworking Texans grow,” said 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.”
“ExxonMobil’s decision to shift its legal domicile reflects the strength of Texas and its predictable corporate laws and modern, business‑focused legal system,” he continued.
The company made clear that this is merely a forward-looking statement. Plans could change subject to a variety of factors including future litigation; expectations related to the Texas business environment and Texas courts; legislative, regulatory, or judicial developments; or unexpected costs, fees and expenses related to the redomiciliation.
