There is a reserved spot in American culture for Texas. It resonates with imagery of wildcatters finding oil gushers and the lonesome cowboy out on the vast plains. All Texas stereotypes have one theme in common—bigness. And now Texas is big in another regard: It is the leading home for Fortune 500 companies, with 113.
Usually, when people think of Texas they think of oil companies. But a scan of Texas’ Fortune 500 companies paints a far different picture. For every Exxon Mobil there is a Dell, an AT&T, a Sysco, and a Research in Motion, maker of Blackberry mobile devices. The reality is that Texas is full of diverse and thriving business communities.
For this and other reasons, Texas tops our first Boardroom Guide to the Best States for Business. The guide is an outgrowth of our annual Guide to State Litigation Climates. This year, the Boardroom Guide was expanded to include measures such as quality of life, tax climate, cost of labor, and other components. We think the Guide captures the fundamental benefits of why a state should be on a board’s radar screen for relocation, expansion, or conversely, a warning to reduce the profile or abandon ship when the state becomes decidedly anti business.
Admittedly, the rankings are biased towards what is meaningful to most businesses and their boards and by necessity does not reflect all the nuances that each state may offer. And no state is homogenous. While some states rank toward the back of the pack, there are likely wonderful communities within them where businesses can and do thrive. For a deeper dive into the litigation picture, we also bring you a state-by-state analysis in the Boardroom Guide to Litigation Climates.
Directorship is deeply indebted to author Steven B. Hantler and his colleagues at the Foundation for Fair Civil Justice, most notably Steve Nolan, for their work assimilating the Litigation Guide. This year, we will update the Guide online with relevant political and judicial developments, making it even more valuable to readers and those looking to strike oil—or silicon—in Texas, or beyond.
Joseph McCafferty is editor in chief of NACD Directorship.