These transactions are paperwork shams that leave the real headquarters operations in the United States, while reducing taxes collected by our treasury. Those lost taxes then must be made up by ordinary citizens and by those businesses that remain headquartered in the United States.
Previous governmental laws and regulations to make such transactions financially painful to corporate executives and board members have been ineffective. Those insiders just vote to provide compensation to themselves to offset additional tax liability they may incur due to such laws and regulations.
It is urgent that something be done about this activity soon. Several corporations have such transactions in process and more are on the way.