When Newell Brands relocated its headquarters from Georgia to New Jersey in 2016, many speculated the move was part of former CEO Michael Polk’s compensation package. It certainly wouldn’t be the first time a company bent its location requirements to source top C-suite talent.
While Polk owned homes in both states at that time, the decision had nothing to do with Polk’s preferences and everything to do with the success and viability of Newell Brands post-merger. In fact, Newell’s relocation allowed the company to generate billions in additional revenue after merging with Jarden Corporation in 2016.
Learn how corporations view relocations as a strategic asset, and how Michael Polk’s leadership at Newell Brands set it up for long-term growth.
Why More Companies Are Relocating
Newell’s move is just one example of a growing trend among companies that treat relocation as a strategic choice. COVID-19 showed just how viable remote can be with the right approach. As a result, it’s no longer uncommon for CEOs to live far from their headquarters. Whether brands aim to attract more C-suite talent or want to leverage the geographical advantages of living in different time zones, it’s all about location.
This new flexibility allows companies to attract and retain top talent in the C-suite, even if it means breaking with traditional geographic ties. For example, Victoria’s Secret had CEO Hillary Super report to its New York City offices instead of its headquarters in Ohio. The same happened with Lidiane Jones, CEO of Bumble. She lived outside of Boston, hundreds of miles away from the company’s Texas headquarters.
However, there are dangers of relocation. When Brian Niccol took the job as the CEO of Chipotle, he relocated the headquarters from Colorado to California — and not all employees were invited to relocate. Niccol’s goal was to reinvigorate the brand, but this move demoralized a struggling team.
Michael Polk carefully collaborated with his team to plan a strategic, effective move for Newell Brands. In his case, that meant moving to his New Jersey home to be closer to work. The goal was to maximize morale, tap into the market’s talent, and get everyone on the same page after a big merger.
Michael Polk’s Strategic Decision Behind the Move to New Jersey
Michael Polk lived in New Jersey as a kid and already owned a home in the state. He was undoubtedly partial to The Garden State but also comfortable working from Newell’s Atlanta, Georgia, headquarters.
Everything changed in 2015 when Newell Brands planned to merge with Jarden Corporation. The merger would reposition Newell as a $10 billion consumer goods company, but there was the issue of combining workforces. Newell wanted to retain Jarden talent and took the opportunity to move Newell into the same building as Jet.com, which would allow it to focus more intensely on its eCommerce capabilities. The talent base in the New York area was richer than what was available in Georgia at the time, which allowed Polk’s team to access a broader talent network.
It didn’t hurt that the State of New Jersey also supplied an incentive package to Newell Brands.
The relocation was risky, but it paid off for Michael Polk. From 2015 to 2017, he scaled Newell Brands to a $15 billion company. Merging with Jarden Corporation increased the company’s size by 75%, tripled enterprise value, and increased dividends by almost 4X.
“The progress we made would not have happened without the strengthening of the leadership team and the investment in talent deeper in the organization. As the company moves forward, the commitment to internal development of talent will be essential to Newell Brand’s sustained success,” he said.
How Smart Relocation Future-Proofs Companies
In 2019, Michael Polk retired from Newell Brands after serving as CEO for eight years. “We met or exceeded our external guidance in 30 of the 32 quarters that I served as CEO, delivered significant value to shareholders through the nearly tripling of the enterprise value of the company and the two-hundred and fifty-three percent increase in the dividend,” he said.
Newell Brands did eventually relocate its HQ to Atlanta after Polk’s departure. Still, the post-merger move to New Jersey united the team, created cohesion, and made innovation possible. In the future, it’s more likely that brands will use strategic relocations like this to build resilient, profitable brands in the fast-growing eCommerce market.
