Exxon Mobil Corporation today announced its Board of Directors has unanimously recommended shareholders approve changing the company’s legal domicile from New Jersey to Texas. The Board concluded that aligning ExxonMobil’s legal domicile with where its leadership and core operations have been based since 1989 will benefit shareholders.

"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 Darren Woods, ExxonMobil chairman and chief executive officer. "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.”

In making its recommendation, 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.

The proposed redomiciliation will not affect business operations, management, strategy, assets, or employee locations. Nor will changing ExxonMobil’s legal domicile reduce shareholder rights. The Board determined that shareholder rights under Texas law are largely comparable to those under New Jersey law – and in some areas stronger. ExxonMobil has no plans to adopt elective provisions under Texas law that would diminish shareholder rights currently in place.

Background

• ExxonMobil moved its headquarters to Texas in 1989. Today, the state serves as the center of the company’s executive leadership, corporate functions, major research facilities, and U.S. workforce.
• Approximately 30% of ExxonMobil’s global employees are located in Texas, with most remaining employees based outside the United States. Approximately 75% of the company’s U.S. employees work in Texas.
• The company’s academic recruiting, operational footprint, and U.S. focused philanthropic efforts are also overwhelmingly centered in Texas.
• ExxonMobil’s connection to New Jersey is largely historical, dating back to the 1882 incorporation of Standard Oil of New Jersey. The company’s Board of Directors has not held a meeting in New Jersey for more than 40 years.

KeyFacts Energy: ExxonMobil US country profile