What does the deal mean to Newell’s and Jarden’s bosses?
Now let’s look at the management of the newly formed company, Newell Brands. We’ll also discuss the roles that Newell Rubbermaid’s (NWL) employees will play in the merged entity and the compensation that Jarden’s employees will get in exchange for their stake in Jarden (JAH).
Upon the completion of the transaction, Michael B. Polk, Newell’s current chief executive officer, will lead the new company, while Martin Franklin, Jarden’s founder and executive chairman, will have a seat on Newell Brands’ board. Franklin will also receive $142 million in cash and $245 million worth of shares in the combined company based on Newell’s recent stock price in exchange for his ~3% stake in Jarden.
In addition, as per Jarden’s recent proxy statement on Franklin’s existing employment agreement, he could receive an amount of $132 million in cash, stock, and benefits. As per the agreement, Franklin is eligible to receive the amount if his contract isn’t renewed within two years of the deal.
James Lillie, Jarden’s chief executive officer, will receive approximately $87 million in cash and stock for his stake in Jarden, while vice chairman and president Ian Ashken will receive about $117 million in cash and stock for his stake. Both of them will have a seat on the board of directors of the newly formed company.
Several other important positions in the new company will be taken by the current employees of Newell Rubbermaid. Mark Tarchetti, currently the chief development officer of Newell Rubbermaid, will become the president of Newell Brands. Bill Burke, currently chief operating officer of Newell Rubbermaid, will lead the legacy Jarden business upon completion of the transaction.
Newell Rubbermaid and its target Jarden are part of the PowerShares DWA Consumer Staples Momentum ETF (PSL), with weights of ~2.7% and ~4.4%, respectively.