ExxonMobil shareholders approve moving company’s legal home from New Jersey to Texas
Exxon Mobil shareholders on Wednesday approved the company’s plan to relocate its incorporation to Texas, a win for the top U.S. oil producer after two major proxy advisory firms urged investors to reject the proposal.
Exxon is incorporated in New Jersey but has been headquartered in Texas since 1989. The company said moving its legal home to Texas was logical and better aligned with its business.
Other companies, including SpaceX, Tesla, and Coinbase, have also recently moved operations to Texas. A state law passed last year strengthened legal protections for businesses, including by allowing companies to set stock ownership thresholds for shareholder lawsuits.
When Exxon announced the change in March, it said it did not plan to raise those thresholds and argued Texas officials are more familiar with its operations.
“The Board believes Texas legislators, judges, and juries who might make decisions that impact Exxon Mobil are generally more familiar with our business and operations,” the company said in its proxy filing.
The proposal passed with 71.3% support, according to preliminary annual meeting results.
Investors also rejected a shareholder proposal seeking more automatic voting options for retail investors, giving Exxon another win. The company introduced a system last year allowing retail investors to automatically vote in line with board recommendations at annual meetings.
The rejected proposal would have added more options, including automatically voting against management’s positions. It received 23.5% support.
