For over a century, Delaware has had a reputation for setting a fair and balanced standard for corporate law, furthering transparency, protecting stockholders, and holding corporate leaders accountable for self-dealing.
Now, Senate Bill 21 (also called the “”Billionaires’ Bill””) threatens to upend that system by drastically limiting the ability of investors, including union pension funds and 401Ks, to hold CEOs and other corporate insiders accountable for acting on their worst impulses and lining their pockets with public investor money.
If passed, the bill would:
- Restrict investor access to critical internal corporate records, making it nearly impossible to investigate and uncover misconduct.
- Shield CEOs, directors, and controlling shareholders from accountability for acting in their own self-interest at the expense of their investors.
- Overturn decades of law allowing investors to sue CEOs, directors and controllers for transferring value from pension funds and other investors into their own pockets.
These provisions would have disastrous consequences for pension funds, institutional investors, 401Ks, and the millions of people who rely on investments for retirement security.
Delaware’s residents have made it clear that they oppose SB 21. Recent polling shows:
- Only 16% of Delaware voters say that SB 21 should be passed as is
- 63% are less likely to vote for legislators who back SB 21
- 68% want Delaware to stand firm against powerful corporate interests
- 61% support drafting an alternative bill
If Delaware voters don’t want this legislation, where is all this coming from?
Elon Musk’s lawyers wrote the Billionaires’ Bill designed to benefit billionaire CEOs at the expense of pension funds and everyday investors after a Delaware judge ruled against Musk’s outrageous $56 billion Tesla pay package.
Simply put, Musk didn’t like Delaware’s ruling, so he’s decided to change state law. Given his attacks on the Federal government, this is especially alarming as it shows he’s now actively going after states as well.
Never incorporate your company in the state of Delaware
— Elon Musk (@elonmusk) January 30, 2024
This blatant power grab would open the door for CEOs and controllers to transfer massive value from teachers, construction workers, and others saving for retirement into their own pockets. It would allow powerful executives and controlling shareholders to operate with near-total impunity and without meaningful judicial oversight.
The bottom line is the Billionaires’ Bill would open the door to the transfer of billions in wealth from hardworking, everyday people to CEOs and billionaires by eliminating basic investor protections against self-dealing.
SB 21 already passed the Delaware Senate and is now headed to the House.
If you live in Delaware, please take a moment and send a letter to your representatives.
@tizzyent If SB21 passes in Delaware it is going to have a massive negative impact on Millions of Americans! #stopsb21