"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."
Stephen Moore: Unleash Prosperity Hotline – In 1911, the government trustbusters split Standard Oil into multiple state-based energy companies, which eventually were renamed Exxon (NJ), Mobil (NY), Amoco (Indiana), Chevron (California), Conoco (Utah), Marathon (Ohio), and others. They and their headquarters were spread throughout the country. But as the table below shows, they have almost all reconvened in one state: Texas.
So it's not a great surprise that Exxon, which was founded as Standard Oil of New Jersey in 1882, has moved to the Lone Star State and is now legally domiciling there.The Exxon board of directors' letter explaining WHY they are moving from blue New Jersey to red Texas should be a wake up call to every blue state chamber of commerce across the nation:
"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."
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. When corporate decisions are challenged, Texas courts are required to apply clear, statute based standards, which support sound decision-making...
ExxonMobil's connection to New Jersey is largely historical, dating back to the 1882 incorporation of Standard Oil of New Jersey.
Don't forget that New Jersey has a 10% income tax and Texas has none at all.
