Newell Rubbermaid’s reorganization of its top executives leaves women and diversity out in the cold

By Maria Saporta

It’s hard to believe.

When Atlanta-based Newell Rubbermaid announced on Friday a major reorganization of its executive team, all the top executives were white males.

Now this is for a consumer-based company that has women as its main customers.

In unveiling its reorganization, the company also announced that Penny McIntyre, who had been head of the company’s consumer group, was leaving to pursue other interests. Two other executives were casualties in the reorganization — Ted Woehrle, chief marketing officer; and Paul Boitmann, chief customer development officer.

McIntyre leaving Newell Rubbermaid is particularly significant. She had been one of three internal candidates considered to become CEO of the Fortune 500 company in 2011. At one point, she was the second highest-paid Newell executive after then-retiring CEO Mark Ketchum, usually a good indicator of who might be the leading internal candidate.

Penny McIntyre

But the job went to Michael Polk, who had been serving on the company’s board and was CEO of Unilever.

Before Friday’s reorganization, McIntyre had led a team of thousands of employees and oversaw half of the company’s business — $3 billion of the company’s $6 billion revenues.

In a statement about McIntyre’s departure, Polk said: “As a result of the structure change, Penny McIntyre (President – Newell Consumer) will leave the company to pursue other opportunities. I wish Penny the best in her future endeavors and thank her for all of her tremendous efforts and accomplishments during her time with Newell Rubbermaid.”

For a complete list of Newell Rubbermaid’s new all white male leadership team, please click on this link.

Newell spokesman David Doolitte did say that the company has several women in key management positions.

“We have strong female leadership in place in key roles throughout the organization,” Doolittle said. “Certainly it is a priority to retain and attract an employee base that mirrors our consumer base.”

Doolittle then went on to acknowledge that “our consumer portfolio is significantly skewed towards females.”

When asked why McIntyre did not fit in with the new reorganization, Doolittle responded: “Penny has done a fantastic job turning around our writing business, putting together our consumer business and helping Newell Rubbermaid reach this point in our transformation. Now, as we write the next chapter, new leaders are coming in to drive the next phase of our transformation.”

McIntyre is not the only executive who brought diversity to the executive team to leave the company. In early September, Juan Figuereo left as Newell’s chief financial officer. He was succeeded by Doug Martin. Then in early October, it was announced that Figuereo was becoming CFO of NII Holdings, a provider of differentiated mobile communications services under the Nextel brand in Latin America. His first day with NII was on Oct. 17.

Another one of the internal candidates for CEO was Jay Gould, president of the Home & Family Group of Newell Rubbermaid. He become president and CEO of American Standard Brands this past January.

And the third internal candidate?

It was William A. Burke III, who was named Newell’s chief operating officer in the reorganization announced on Friday.

It goes without saying, Newell’s reorganization on Friday dealt a blow at efforts to diversify the top executive ranks at the consumer-oriented company.

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18 comments
FulCorn
FulCorn

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SEO Company in Chennai
SEO Company in Chennai

 Its amazing growth of women... McIntyre leadership gives motivation to many women who want to reach their top goal.. Thanks Maria..

SEO Company in Chennai
SEO Company in Chennai

Its amazing growth of women... McIntyre leadership gives motivation to many women who want to reach their top goal.. Thanks Maria..

SEO Company in Chennai
SEO Company in Chennai

Its amazing growth of women... it gives motivation to many women who want to reach their top goal.. Thank u..

Burroughston Broch
Burroughston Broch

Maria, are you proposing diversity quotas for corporate leadership?

If so, who would set the quotas and how would they be enforced?

Would you invest your money in a corporation that put diversity before profit?

Do you put diversity before profit in your company?

 

Burroughston Broch
Burroughston Broch

Maria, are you proposing diversity quotas for corporate leadership? If so, who would set the quotas and how would they be enforced? Would you invest your money in a corporation that put diversity before profit? Do you put diversity before profit in your company?

typingperson
typingperson

 @Burroughston Broch

 I understand from your comment that you think having women leaders at Newell Rubbermaid instead of men would make the company less profitable. What do you base this on?

typingperson
typingperson

@Burroughston Broch  I understand from your comment that you think having women leaders at Newell Rubbermaid instead of men would make the company less profitable. What do you base this on?

Burroughston Broch
Burroughston Broch

typingperson, you understood wrong - read my post again, this time with care.

I asked Maria whether she would invest her money in a company that put diversity before profit.

I did not state that having women leaders instead of men would make a company less profitable.

I think that company leaders should be selected for business acumen and merit, not for race, gender, or any other type of diversity you may contrive.

 

 

Burroughston Broch
Burroughston Broch

typingperson, you understood wrong - read my post again, this time with care. I asked Maria whether she would invest her money in a company that put diversity before profit. I did not state that having women leaders instead of men would make a company less profitable. I think that company leaders should be selected for business acumen and merit, not for race, gender, or any other type of diversity you may contrive.

Burroughston Broch
Burroughston Broch

Maria, thanks for your response. This is a matter for the company's shareholders to decide, not you or me or the press.

What's your documentation that companies with the greatest diversification in their board room and executives tend to do better financially?

As far as companies mirroring the population at large and their customers in particular, I completely disagree. Let's look at a large consulting engineering firm. Do you want the board and top management to be engineers who know the business, or do you want them to be architects and owners who are the firm's customers but don't know the business?

mariasaporta
mariasaporta moderator

 @Burroughston Broch If women make up a majority of its customers, it only stands to reason that it would be better for the company's business and profits to have women executives.  It has been well documented that companies with the greatest diversity on their boards and executive ranks tend to do better financially. Companies still have a super long way to go before their executive ranks and their boards mirror  the population at large and their customers in particular. It's not a quota issue. It's a good business practices issue.

Burroughston Broch
Burroughston Broch

Maria, thanks for your response. This is a matter for the company's shareholders to decide, not you or me or the press. What's your documentation that companies with the greatest diversification in their board room and executives tend to do better financially? As far as companies mirroring the population at large and their customers in particular, I completely disagree. Let's look at a large consulting engineering firm. Do you want the board and top management to be engineers who know the business, or do you want them to be architects and owners who are the firm's customers but don't know the business?

mariasaporta
mariasaporta

@Burroughston Broch If women make up a majority of its customers, it only stands to reason that it would be better for the company's business and profits to have women executives.  It has been well documented that companies with the greatest diversity on their boards and executive ranks tend to do better financially. Companies still have a super long way to go before their executive ranks and their boards mirror  the population at large and their customers in particular. It's not a quota issue. It's a good business practices issue.