Billionaire hedge fund manager Bill Ackman is joining a growing list of high-profile companies, including Dropbox and SpaceX, in abandoning Delaware for Nevada. The trend follows recent court rulings that have empowered shareholders to challenge executive decisions.
Ackman, CEO of Pershing Square Capital Management, announced his company’s reincorporation in Nevada on social media. He cited concerns about top law firms recommending other states like Texas over Delaware due to its restrictive laws.
Similar sentiments are shared by Tesla CEO Elon Musk, who previously moved SpaceX to Texas after a judge struck down his $55 billion compensation package. Meta is also considering leaving Delaware for a more shareholder-friendly jurisdiction.
The recent court rulings have raised concerns among billionaire CEOs that they will face increased scrutiny from shareholders and boards of directors in Delaware courts. Ackman hopes that Nevada or other states like Texas will offer less permissive laws, allowing for more freedom to make business decisions.
Source: https://www.businessinsider.com/bill-ackman-pershing-square-capital-management-delaware-nevada-2025-2