Billionaire Hedge Fund Manager Bill Ackman to Move Management Company Out of Delaware

February 2, 2025 – Billionaire hedge fund manager Bill Ackman, CEO of Pershing Square Capital Management, announced on Saturday that he plans to reincorporate his management company in Nevada, moving away from Delaware.

Ackman’s decision, shared in a post on X (formerly Twitter), follows similar moves by high-profile companies such as DropBox, Meta, and SpaceX. In his statement, Ackman cited recommendations from top law firms favoring Nevada and Texas over Delaware as key reasons for the shift.

Delaware has long been considered a business-friendly state due to its favorable corporate laws and established legal framework. However, recent court rulings, including a high-profile decision striking down Elon Musk’s $55 billion Tesla compensation package, have led some corporations to reconsider their incorporation in the state.

Ackman’s announcement aligns with a growing trend among major companies seeking jurisdictions perceived as more favorable to executive decision-making and less prone to shareholder litigation.

Corporate Exodus from Delaware
The move by Ackman’s Pershing Square Capital Management is part of a broader corporate exodus from Delaware. In 2024, Tesla CEO Elon Musk publicly encouraged companies to leave the state after a Delaware judge invalidated his $55 billion pay package, deeming it excessive. Musk subsequently reincorporated SpaceX in Texas.

Similarly, Meta Platforms, led by CEO Mark Zuckerberg, is reportedly considering reincorporating in Texas or another state, according to The Wall Street Journal. Meta’s corporate structure grants Zuckerberg near-total control, and the company is seeking a jurisdiction that may offer greater protection against shareholder challenges.

Shift in Corporate Preferences
The recent wave of corporate relocations reflects growing dissatisfaction with Delaware’s legal environment, particularly among executives concerned about shareholder lawsuits and court rulings that limit executive authority. States like Nevada and Texas are increasingly being viewed as more accommodating to corporate interests, with legal systems perceived as less interventionist.

Ackman’s decision underscores the evolving dynamics of corporate governance and the strategic considerations driving companies to reassess their incorporation choices.