A Look at the Reasons Why Businesses Are Fleeing Delaware to Nevada and Texas

Elon Musk recently filed paperwork to convert the incorporation of his rocket manufacturing company SpaceX from Delaware to Texas. The move came after the Delaware Court of Chancery issued its decision rejecting Mr. Musk’s nearly $56 billion compensation plan with Tesla. In late January, Delaware Chancellor Kathleen St. J. McCormick ruled that the process leading to the approval of his pay package was “deeply flawed” and “unfair.” “Never incorporate your company in the state of Delaware,” Mr. Musk wrote on X after the court’s decision, adding, “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.”...