Additional Coverage:
- Billionaire hedge fund manager Bill Ackman says he will move management company out of Delaware (newsbreak.com)
Billionaire hedge fund manager Bill Ackman is moving his firm, Pershing Square Capital Management, out of Delaware. He announced the move on social media, citing Nevada as the new location.
Ackman stated that top law firms are now recommending Nevada and Texas over Delaware, echoing a similar move by Dropbox. He pointed to this as the reason for his decision.
Several other prominent companies are also reportedly considering leaving Delaware. This includes Meta, which is said to be exploring a move to Texas or another state.
Tesla and SpaceX CEO Elon Musk has been a vocal proponent of leaving Delaware. He moved SpaceX to Texas after a Delaware judge repeatedly rejected his Tesla compensation package.
These moves represent a shift away from Delaware, traditionally seen as a business-friendly state. The trend seems driven by recent court decisions that some see as empowering shareholders to challenge executive decisions.
These billionaire CEOs appear to be seeking states with court systems they perceive as less likely to side with shareholders in such disputes.