Gurley argues going public ups a company's game through pressure, disclosure, and transparency requirements.
“I one of the reasons I encourage companies going public is because I think it ups their game. I think it it presents more pressure.”
Gurley calls for discussion about how much stock actually needs to be given away for company success.
“And so I'd love to see more discussion about that. I think it really ask a a very important question about how much stock actually needs to be given away to make these companies success.”
Gurley argues management treats stock-based compensation as if it's free, unlike cash expenditures which get more scrutiny.
“I personally think management is a lot more, thoughtful about cash expenditures, and I think they think about this SBC as if it's free almost.”
Gurley argues companies in Delaware could face derivative lawsuits for not moving after the Musk compensation ruling.
“I would make the argument that every company in Delaware has to move to a different domicile because they could be sued in a future derivative lawsuit for the risk they've taken by staying in Delaware.”
Gurley notes ISS and Glass Lewis are now over 80% owned outside the United States.
“The senator that you're talking about said on on on when he was giving this talk that that these two companies are now both over 80% owned outside The US.”
Gurley warns highest-profile companies face greatest risk from activist Delaware judges, not smaller market cap firms.
“I think it's actually the highest profile companies that are at risk because they're the ones that, you know, an activist judge is gonna wanna make a a exception out of.”
“Time to head to Texas or Nevada. Staying is adding unnecessary risks for your shareholders. You should act in your shareholders best interest and flee Delaware. Delaware is no longer consistent. They are targeting companies they don't like. https://t.co/ojEnbYOu5o”
Gurley advises companies to relocate from Delaware to Texas or Nevada, claiming Delaware courts are now inconsistent and targeting specific companies.
“Time to head to Texas or Nevada. Staying is adding unnecessary risks for your shareholders. You should act in your shareholders best interest and flee Delaware. Delaware is no longer consistent. They are targeting companies they don't like.”
Gurley advises companies to relocate from Delaware to Texas or Nevada, arguing Delaware courts have become inconsistent and target specific companies.
“Time to head to Texas or Nevada. Staying is adding unnecessary risks for your shareholders. You should act in your shareholders best interest and flee Delaware. Delaware is no longer consistent. They are targeting companies they don't like.”