ExxonMobil is poised to move its legal headquarters from New Jersey to Texas in search of a more friendly business environment, the company announced March 10.
The board of directors for the largest U.S.-based oil producing company, which already runs its operations from the Houston suburb of Spring, unanimously recommended to its shareholders that they vote to redomicile the company in Texas.
Shareholders will vote on the change at the company’s annual meeting on May 27. If successful, it will move Exxon’s legal home for the first time since it registered in New Jersey in 1882 as Standard Oil Company — the company later changed its name to Exxon, then merged with Mobil Oil Corp.
“Over the past several years, Texas has made a noticeable effort to embrace the business community,” ExxonMobil Chair and CEO Darren Woods wrote in a statement Tuesday. “In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value. 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.”
The proposed move will not affect the company’s business operations or employee locations, the company said.
ExxonMobil has been headquartered in Texas since 1989, and about 30% of its employees currently work in the state.
The location of a company’s incorporation dictates the legal, tax and regulatory landscape for the business.
Exxon would join Tesla, Space X and Coinbase as major U.S. companies to redomicile in Texas in recent years as the state moves to become more business friendly.
In 2023, the Legislature passed and Gov. Greg Abbott signed a law that created the Texas Business Court and the 15th Court of Appeals, specialized legal venues designed to handle business and commercial disputes. Those courts began operating in 2024.
Last year, the Legislature also approved a law that made it more difficult to sue board members of companies incorporated in Texas.
“Freed from the stranglehold of over-regulation, Texas is where global brand leaders thrive and jobs for hardworking Texans grow,” Abbott wrote in a Tuesday statement. “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.”
Exxon noted the creation of the business courts and other recent legal reforms made by Texas in its statement announcing the decision.
“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,” the statement said.
Texas has benefited from growing frustration among company executives with traditional corporate havens of New Jersey and Delaware. New Jersey sued Exxon in 2022, alleging the company contributed to climate change, which forced the state to pay for cleanup after natural disasters. The lawsuit was dismissed last year.
Delaware remains the nation’s top state for U.S. companies’ legal home.
Coinbase’s CEO wrote last year that the company was reincorporating from Delaware to Texas because the Lone Star State’s legal framework is more predictable and efficient. Tesla reincorporated from Delaware to Texas after a 2024 court ruling ordered CEO Elon Musk to give up a compensation package, finding that the package’s shareholder approval process was “deeply flawed.”
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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.
