Exxon Mobil shareholders last week voted to support management’s decision to move its corporate domicile to Texas from New Jersey. It’s a smart move that raises a question for other companies: Is it becoming a corporate governance duty to leave states that punish business for states that don’t?
Seventy-one percent of Exxon holders supported the corporate move at its annual meeting. That endorsement came despite opposition from the proxy adviser duopoly of Glass Lewis and Institutional Shareholder Services. Those two advisory firms try to enforce progressive policies on corporate governance even if they’re not in the best interest of shareholders.
Exxon CEO Darren Woods pitched the decision as better for its business as the company has operated in Texas for decades. “The board believes that kind of familiarity will lead to more reasonable, productive decisions from Texas officials and citizens, which is critical to the long-term success of the company,” Mr. Woods told shareholders.