Posted on 02/02/2025 10:58:52 PM PST by Ultra Sonic 007
Delaware is facing a further exodus of tech companies amid reports that Meta and Dropbox are moving out of the state.
Newsweek has contacted Meta and Dropbox for comment via email.
Why It Matters
Delaware has long been considered a business-friendly state due to its corporate tax advantages, and is home to multiple large companies. However, backlash against the First State has intensified after Delaware Judge Kathaleen McCormick ruled that Tesla CEO Elon Musk's record-breaking $56 billion compensation package was excessive.
Musk, who has become increasingly influential in both the political and corporate world, urged companies to pull out of the Democratic-led state. In February 2024, he announced that SpaceX was relocating its incorporation from Delaware to Texas, following Tesla's corporate move from California to Texas in 2021.
Meta, the parent company of Facebook, Instagram, and WhatsApp, is reportedly considering moving its incorporation from Delaware to another state, such as Texas, according to reports in the national press.
The company has been in talks with Texas officials about the potential move, though other states are also being considered. An unnamed source told The Wall Street Journal that these discussions predated former President Donald Trump's return to office.
[...]
Meanwhile, file-hosting service Dropbox is also said to be moving its incorporation from Delaware to Nevada.
The move was revealed in a letter to stockholders that has been shared on social media. Dropbox said it has received approval from a majority of shareholders to proceed with the transition.
(Excerpt) Read more at newsweek.com ...
The above story from Newsweek is the chaser.
Bump
GirlBoss Kathaleen will still get a paycheck...
Is there nothing that the GirlBosses of America don’t know?
Hey there, Delaware Judge Kathaleen McCormick.
Play stupid games, win stupid prizes.
DEI Judge thought she could f with the money. You cannot f with the money without the money f’ing with you.
Wouldn’t Tesla’s board of directors decide how much to pay their CEO? Why is this judge involved in the decision at all? We’re employees complaining how ‘unfair” the pay ratio is?
Did the good judge also have an opinion on the $33,000 compensation package for Mr. John Dokes, janitor at one of the Tesla facilities?
If not: WHY not?
Regards,
The suit was by dissident shareholders and contradicts the business judgment rule that commonly insulates corporate boards against judicial second guessing. The decision also endangers Delaware’s long record of success as the country’s leading state for incorporation due to a solid business management friendly legal environment. Prompt correction by the Delaware appellate courts or legislature is needed for the state to keep their more than $2 billion a year in business incorporation and tax revenue.
Judge Kathaleen
So a I hate Trump judge rules this, then it affects the other major companies that have filed to do business in that state. Way to go democraps. I see Wilmington emptying out along with the jobs they bring.
Its not just tech companies.
Billionaire hedge fund manager Bill Ackman says he will move management company out of Delaware.
https://finance.yahoo.com/news/billionaire-hedge-fund-manager-bill-005946945.html
New York is going to suffer massively too for their “get Trump at all costs” legal system which has now shown everybody how corrupt it is.
“So a I hate Trump judge rules this, then it affects the other major companies that have filed to do business in that state. Way to go democraps. I see Wilmington emptying out along with the jobs they bring.”
Yep. Her rice bowl is not affected so the possibility of thousands of peons losing jobs is of no consideration at all.
And as has been mentioned above it is not her job to rule on CEO compensation.
Tech companies wanting to escape progressive hellholes are welcome to move to Florida.
Even if as an investor I was upset with how much Musk is being oaid, no judge has the authority to determine how anyone is compensated. Buh bye Delaware, indeed.
Just WHY is Delaware the state that tons of companies incorporate in??
The Founders were wise to setup individual states just for such reasons. These morons called leftists who ruin a state never seem to learn the disastrous consequences and that people can move to another less moronic state.
the main reason companies incorporated in DEwas not taxes. it was the predictable and established PUBLISHED settled body of corporate law and precedents in Delaware’s Court of Chancery. the only court structure among the US states that was devoted to and limited to adjudication of corporate law cases. companies used to be sure their cases would be decided based on precedents, and caseswould be heard by a judiciary that well understood the nuances and details of corporate law, and not by some backwater judge, in between his other cases involving divorce and personal bankruptcy.
not any more. where once companies could at least be sure of Chancery actions following precedent and adhering to published principles of corporate legal jurisprudence, they now have the risk of getting a politically tainted activist ruling.
the judge has killed the brand of the Delaware Court of Chancery. companies have no reason to rely on being treated fairly by whatwas once a unique and invaluable Delaware court. this is not only bad for DE it’s a loss to the country.
but hey, we messed up the evil Elon, so there’s that.
Bingo.
Delaware isn't going to recover from this. Even if it's overturned, the "Incorporate in Delaware" is tainted. It will be interesting to see which states corporate boards move their companies to.
The judges involved are all unfit for the bench.
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