Exxon moves to ditch New Jersey and relocate to Texas

ExxonMobil's board of directors voted unanimously to recommend the move, with the final decision now weighing on the shareholders. The proposed re-domiciliation would move its legal office to the Lone Star State, where Exxon's core operations have been based since 1989, the company said.

"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 ExxonMobil CEO and chairman Darren Woods in a statement. "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."

Approximately 75 percent of ExxonMobil's workforce is based in Texas, while around 30 percent of its global employees are located there. The company said the shift "will not affect business operations, management, strategy, assets, or employee locations."

ExxonMobil hinted at years of legal clashes with climate change activists and investors. "In making its recommendation," the company said, "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."

Additionally, ExxonMobil, formerly known as Standard Oil Company of New Jersey, said it has "no plans to adopt elective provisions under Texas law that would diminish shareholder rights currently in place." There hasn't been a board meeting in the state of New Jersey for more than 40 years.

Fox Business reported that a climate activist hedge fund, Engine No 1, won three seats on the board in 2021, which resulted in Exxon suing activist investors in 2024 over its climate change shareholder proposals. The fossil fuel company has also been sued by New Jersey officials on claims, which have since been dismissed, that the oil giant has contributed to climate change.