Delaware's Corporate Courtship: Winning Back Big Business After Elon Musk's Exit

Ladies and gentlemen, buckle up! Delaware is on a mission to make nice again with corporations after Elon Musk's dramatic exit. The state is pulling out all the stops to keep its status as the corporate haven of the United States. Let's dive into the details and see what's really going on.

First things first, Delaware's corporate law is getting a major overhaul. The state Senate just passed SB 21, a bill aimed at making Delaware's corporate law clearer and more predictable. This is a direct response to Elon Musk's public criticism of Delaware's judiciary after a judge rescinded his $56 billion CEO pay package. Musk's outcry sparked a wave of companies considering or planning to exit Delaware, including Dropbox, Meta, and Bill Ackman's Pershing Square Capital.

Now, let's talk about the potential risks and benefits of these changes. On one hand, making Delaware's corporate law more predictable could attract new businesses seeking a stable legal environment. This could lead to increased economic activity and job creation in Delaware. On the other hand, the bill's potential to reduce shareholder rights and increase the power of corporate boards could lead to a backlash from investors and shareholders. Many institutional investors, legal scholars, and shareholders' attorneys have opposed the bill, arguing that it would harm minority shareholders and allow boards and executives to make decisions based on their own interests rather than for the broader investor base.

But Delaware isn't just sitting back and waiting for the changes to take effect. The state is also shifting its economic development strategy. Governor-elect Matt Meyer has proposed a plan to de-emphasize taxpayer-backed grants for large corporations and instead focus on small business development and workforce training. This marks a significant departure from Delaware's long-standing economic strategy, which has relied heavily on large corporate grants to attract major projects and investments.

Meyer's plan could foster a more diverse and resilient economy. Small businesses are often the backbone of local economies, creating jobs and stimulating local economic activity. According to JPMorganChase’s 2025 Business Leaders Outlook Survey, about 60% of small and midsize business leaders are optimistic about the local economy. This optimism, combined with Delaware's unique market dynamics, creates opportunities for local business owners. Meyer's plan to invest in small businesses and workforce development could lead to the creation of more sustainable and locally rooted jobs.

But the changes don't stop there. The Delaware Investment Agenda proposes the creation of the Delaware Futures Council, a nonpartisan independent group that would raise awareness among Delaware’s leaders on the fundamental challenges impacting the state’s future prosperity. This new entity would complement the work of the Delaware Prosperity Partnership, which has been successful in attracting investments and jobs to the state. The Futures Council would provide a broader perspective on the state's economic challenges and opportunities, addressing key areas such as workforce training, infrastructure investment, and innovation.



So, what does all this mean for Delaware's future? The state is taking bold steps to win back big business and foster a more collaborative approach to economic development. But the road ahead is fraught with challenges. The proposed changes in Delaware's corporate law could have significant long-term impacts on the state's ability to attract and retain major corporations. The shift in economic development strategy could lead to a more balanced and sustainable economic landscape, but it also poses risks to Delaware's traditional reliance on large corporate grants.

In conclusion, Delaware is trying to make nice again with corporations after Elon Musk's exit. The state is pulling out all the stops to keep its status as the corporate haven of the United States. But the road ahead is uncertain, and only time will tell if these changes will be enough to win back big business and foster a more collaborative approach to economic development. Stay tuned, folks! This is one story you won't want to miss.