DExit: Why Some Companies Are Leaving Delaware

Key Takeaways

  • “DExit” Movement: There is a widely-reported trend of companies reincorporating out of Delaware into states like Texas, Nevada, and Florida due to recent Delaware court decisions affecting director protections and compensation packages.
  • Legislative Responses: Delaware has responded with new statutes to clarify and codify rules around controlling shareholders and board decision-making, but the long-term impact depends on judicial interpretation.