John,
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, SB 21, also called the “Billionaires’ Bill” because it was written by Elon Musk’s lawyers to the benefit of Elon Musk and other billionaire CEOs, 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.
It’s already passed the state Senate. Today, SB 21 will have a hearing in the House -- and proponents are working hard to bring it to a floor vote of the whole House on Thursday.
The bill would:
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Restrict investor access to critical internal corporate records, making it nearly impossible to investigate and uncover misconduct.
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Shield CEOs, directors, and controlling shareholders from accountability for acting in their own self-interest at the expense of their investors.
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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 state legislators in the House need to hear from us right now. YouTube influencer PoliticsGirl posted a brief explainer for more information. Check it out and then sign and send your message urging Representatives to reject the Billionaires' Bill and vote NO on SB 21 now.
Fortunately, the bill is not popular. New polling shows:
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Only 16% of Delaware voters say that SB 21 should be passed as is
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63% are less likely to vote for legislators who back SB 21
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68% want Delaware to stand firm against powerful corporate interests
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61% support drafting an alternative bill
It’s not surprising that the public hates it. 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.
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.
Sign and send your direct message to state leaders now.
Thank you for taking action today.
-Natalia
Natalia Renta (she/her)
Associate Director
Americans for Financial Reform
