Carl Icahn Hedge Fund Company to Miami for Tax Reasons

Carl Icahn is taking his talents to South Beach.

The activist investor is shuttering the New York offices of his publicly-traded Icahn Enterprises and moving the operation to Miami next year, according to the New York Post.

Icahn had been considering the move for a few years, and he informed his employees several months ago that he planned to close the New York offices by the end of March 2020, the Post found.

Employees are being offered a $50,000 relocation benefit if they decide to join Icahn in Florida, which will be paid in April 2020 for those who make the state their permanant residence.

The investing billionaire has also assured staffers that they’ll be paid a minimum of what they earned in salary and bonus in 2018 for the following year. Further, anyone who is let go before the end of March 2023 will get an “immediate payment” in that same amount, according to the Post.

Icahn Enterprises has around 50 employees, and more than half, including several lawyers and analysts, are expected to make the move to Florida.

One of the primary benefits of relocating to Florida is the state’s competitively-low tax rate. A report from Bloomberg confirmed Thursday that taxes were very much a deciding factor for Icahn.

Icahn is well-known as vocal activist investor who constantly searches for ways to improve the performance of his portfolio companies. He launched a proxy battle in July against Occidental Petroleum over its proposed $38 billion acquisition of Anadarko Petroleum.

Icahn also has major stakes in Caesars Entertainment, Xerox, and Newell Brands.