Bill Ackman, the founder of hedge fund Pershing Square Capital Management, is to relocate his management company from Delaware to Nevada following the footsteps of other prominent companies including Dropbox and SpaceX, according to a report by Business Insider.
Ackman made the statement on X on Saturday, revealing that top law firms are now recommending Nevada and Texas over Delaware. “We are reincorporating our management company in Nevada for the same reason,” Ackman wrote.
Pershing Square Capital Management declined to provide further comments on the move.
Over the past year, several major companies have also announced plans to leave Delaware, traditionally seen as a business-friendly state. Former President Joe Biden’s home state has come under scrutiny after a series of court rulings that some corporations argue give shareholders too much power to challenge executive decisions.
Tesla CEO Elon Musk was vocal in encouraging companies incorporated in Delaware to move, following the repeated overturning of his $55bn Tesla compensation package by a Delaware court. This legal battle prompted Musk to move SpaceX to Texas.
Meta, which grants CEO Mark Zuckerberg near-total control through its corporate structure, is also reportedly considering relocating its incorporation to Texas or another state, according to The Wall Street Journal.