Delaware
Elon Musk’s ‘Dexit’ sparks corporate exodus, threatens Delaware’s business throne
Delaware’s corporate grip seems to be slipping. Frustrated CEOs, echoing Elon Musk’s frustrations with the state, are ditching the state’s Chancery Court and reincorporating elsewhere—a movement that has been colloquially dubbed as “Dexit.”
The “Dexit” Exodus:
- Meta, Dropbox, Pershing Square, Trade Desk, Fidelity National Financial, and Sonoma Pharmaceuticals have drafted up plans to potentially exit Delaware and incorporate somewhere else, as noted in a Yahoo Finance report.
- These companies, if they do leave, would join Elon Musk’s Tesla, SpaceX, Boring Company, Neuralink, and X.
- The trend has been informally dubbed as “Dexit.”
- Musk’s companies left the state after Delaware Judge Chancellor Kathaleen McCormick struck down the CEO’s 2018 pay package after all its targets had already been achieved.
Musk’s warning:
- Musk has been very open about his disdain over Delaware’s courts. “Never incorporate your company in the state of Delaware,” he posted on X in January 2024.
- Musk’s frustration with Delaware became even more evident after Chancellor McCormick refused to consider the decision of TSLA shareholders, who ratified the CEO’s pay package during its 2024 Annual Meeting of Stockholders.
- Tesla shareholders have voted to reincorporate the company in Texas instead of Delaware during its last annual meeting.
Experts Weigh In:
- “I think there is a lot of pressure on Delaware,” said University of Virginia Law School professor Michal Barzuza. “And I think the more moving, the easier it becomes for others to move.”
- Pershing Square CEO Bill Ackman was among the entrepreneurs who have opted to leave Delaware. In a post on X, he announced that he is leaving the state for Nevada.
- “We are reincorporating our management company in Nevada for the same reason. Top law firms are recommending Nevada and Texas over Delaware,” Ackman wrote.
- Coinbase chief legal officer Paul Grewal shared similar sentiments in recent weeks.
- “I’ve tried cases to Delaware juries, enjoyed friendships with Delaware judges, and taught classes to Delaware lawyers. The Hotel DuPont is a familiar stay, and I’ve bought too many shirts and ties to count at Wright & Simon in Wilmington. And so I share this with affection, not animosity: Delaware is at serious risk of losing its standing as the leading state of incorporation for American companies,” Grewal wrote.
The Stakes for Delaware:
- For roughly a century, Delaware has lured companies with business-friendly laws, a specialized court, and easy filings. Due to these, the state hosts over two-thirds of Fortune 500 firms.
- Incorporation fees are a notable part of Delaware’s economy. In 2024, incorporation fees brought $1.33 billion to the state.
- Delaware rivals like Nevada, Texas, and Wyoming are now muscling in with their own pro-business pitches.
- New Delaware Gov. Matt Meyer is digging into Chancery complaints.
- “I’m hearing something similar from a number of Delaware companies and attorneys. That they feel like they get the same judge every time when they come to Delaware business court, and they don’t feel like they are getting a fair hearing,” he told CNBC.
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The Hagley Museum and Library houses a collection of patent models
The Hagley Museum and Library houses the nation’s second-largest collection of patent models, many of which the public never gets to see.
For most, 41 years of service is more than enough. For State Librarian Annie Norman, though, even retirement can’t slow her down.
“The work is never done; there’s always something to do,” she said. “I’m going to have to continue to help in other ways.”
Norman will step away this fall after 24 years as the Delaware state librarian and director of the Delaware Division of Libraries.
Throughout her tenure, Norman made waves; the director helped create the Delaware Library Consortium, which allowed all of Delaware’s Public libraries to share items, and brought the library system along during a wave of technological change. For these achievements, she was named to the Delaware Women’s Hall of Fame in 2016 and appointed by President Joe Biden as a member of the National Museum and Library Services Board.
We spoke with Norman as she wraps up an accomplished career about her proudest achievements, and the state of libraries in 2026.
Question: As you look back on your tenure, what was your proudest accomplishment?
Answer: What I’ll be known for more than anything is probably the statewide library catalog and consortium. The politics of bringing all of those libraries together, after years of there being four separate library catalogs in Delaware, took about eight years. More recently, I think bringing the school libraries into that catalog is going to be really significant. We’ve got more than 50 school libraries to be a part of the statewide catalog, something we think can really help with the literacy crisis in this state.
One of the biggest challenges of your tenure was adjusting to the large wave of technology that came about. How have you and the Delaware libraries handled it?
It’s been very systematic. We have a great IT team that helps manage for us, as well as the state funding 100% of library technologies. The growth of the iPhone has certainly had a huge impact on literacy, but we’re really just working hard to bring back the excitement of reading.
The Delaware libraries’ programming have always been a popular resource. How important do you view these offerings to local communities, and will they continue to expand?
Yes, libraries are about enrichment, which means helping support people in things like entrepreneurship, education and innovation. We’ve had libraries start up job centers, which were so successful we could expand to entrepreneurship, and even help with more basic social needs, by starting a “social innovation team” to help with more of the social services-type work.
Where we still struggle is we can only help people access Delaware systems to help with their needs, not fix things within those systems. For that reason, we always encourage these systems to work with us, so the Delaware library system can fit everyone’s needs.
Cuts toward libraries just occurred in New Castle County, with the potential for more to come. How will the library system look to stay afloat?
Because of the economy, because of federal changes, things can get difficult, it’s not the first time we’ve experienced budget cuts. We’ve progressed significantly over the years, but there is much more work to do, and I don’t know that the public understands how critical libraries and librarians are to literacy.
The power of walking into a library and being able to choose what you want to read for a child is powerful, and until people understand that, we can’t achieve our literacy goals.
Adam Denn is an intern reporter for Delaware Online/The News Journal. You can reach him at apdenn@delawareonline.com.
Inspiration
Do you have a suggestion for our Inspiration page? E-mail Tammy Paolino at tpaolino@usatodayco.com
DELAWARE COUNTY, Ohio — People in Delaware County said it feels like new housing developments are popping up on every corner.
WSYX
“What haven’t you noticed, right? The whole area just exploded,” said Scott Shonebarger.
Scott Sanders, the executive director of the Regional Planning Commission, said companies like Intel and other industries are a main driver for thousands of people moving to Delaware County.
With the big boom comes an urgent need for more housing.
John Wicks is the developer at Real Property Design and Development.
He has spent over a decade building homes for families in Delaware County.
Wicks said the Olentangy School District is one of the hottest spots for new homes.
“I started with one high school up until the 90s, then now we’re up to four up to five different high schools so it’s just a big draw,” said Wicks. “It’s a beautiful community.”
The district has grown into the fourth largest in Ohio with a new elementary school opening next year, and a fifth high school in 2028.
Wicks said the growth has presented some challenges over the years like labor shortage and some opposition.
“It’s become a big issue for a lot of people that live in and around these areas. They tend to oppose new growth and new development, so restrictions have gotten a little bit harder. Costs have obviously gone up over the last 20 years,” said Wicks.
The planning commission says between 275,000 and 350,000 people could call Delaware County home by 2040.
That’s up from 214,000 in 2020.
Scott Shonebarger said he supports growth but wonders when is enough.
“I mean to a certain extent I think you know at some point right you have to have some sort of boundaries I think, getting into the fact that now you have five high schools,” said Shonebarger. “What’s the limit?”
Police in Wilmington, Delaware, shot and killed a 19-year-old man Wednesday night.
The incident happened in a residential area near 24th and Jessup streets just after 11 p.m., Wilmington police said in a news release. The person who was shot has not been publicly identified.
Officers were monitoring a large crowd gathered outside when they saw a man exit a home with a handgun and point it toward the crowd, police say.
When officers approached the man, he ran away and a foot pursuit began, police say.
At some point in the chase, an officer fired their weapon and hit the 19-year-old. The man was taken to a local hospital, where he later died.
Police say they recovered a loaded gun from the man and that the officer was not injured.
Video filmed at the scene shows a crowd of residents gathered outside after the shooting.
Police are asking anyone with more information to come forward. The shooting is under investigation by the Delaware Department of Justice and Wilmington police.
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