Chicago’s richest resident moves to the Sunshine State, taking his money and his company with him.
Ken Griffin, a hedge fund manager worth nearly $29 billion, has already moved his family to Florida. And he recently issued a memo to employees that his $22 billion firm, Citadel Securities, would also move its headquarters there.
While the trend of companies moving from high-tax states like California, Illinois, and New York to lower-tax, business-friendly states like Texas and Florida is not new, one factor in the decision is potentially concerns the future of Chicago’s business. climate.
Crime as a Factor in Citadel’s Move from Chicago
Citadel officials cited crime as one of the biggest reasons for the move. According to report, there have been several incidents involving Citadel employees over the past few years. Ken Griffin himself survived a carjacking attempt, a Citadel employee was stabbed on his way to work, and there were numerous reports of shootings, riots and looting near the homes of some employees.
Ken Griffin has been open about how crime has affected his employees. In a recent interview, he said, “if people are not safe here, they will not live here. I had several colleagues robbed at gunpoint. I had a colleague stabbed on his way to work, countless burglaries. I mean, it’s a really difficult backdrop to attract talent to your city.”
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Billionaire’s move will cause significant financial difficulties
According to one report, Citadel has about 1,000 employees in and around Chicago, and Griffin’s company contributes billions of dollars in taxes to the local and state economy. Griffin has personally donated over $600 million to Chicago political and charitable organizations.
Citadel’s announcement was another blow to Illinois, which has lost three major headquarters in the past year. Boeing is moving its operations to Virginia, Caterpillar is moving its headquarters to Texas, and Citadel is now heading to Miami, Florida.
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Read the full note to staff from Ken Griffin
“I am pleased to inform you that Citadel is moving its global headquarters to Miami. Miami is a dynamic, growing metropolis, embracing the American Dream and embracing what can be achieved by a community working to build the future together. I am thrilled to have recently moved to Miami with my family and look forward to the rapid expansion of The Citadel in a city so rich in diversity and teeming with energy.
Chicago will continue to play an important role in Citadel’s future as many of our colleagues are closely connected to Illinois. However, over the past year, many of our Chicago teams have asked to relocate to Miami, New York, and our other offices around the world. With the opening of our new office at 425 Park Avenue, expansion at 350 Park Avenue and the opening of our new headquarters in Brickell Bay, in the heart of Miami’s booming financial district, we are well positioned to support this transformation. We understand that the choice of where to name a house depends on personal, family, school and other considerations, and we will provide comprehensive support to meet the needs of our teams.
Chicago was a wonderful home for the Citadel. I still remember the incredible civic pride and engagement when I came here over thirty years ago, and the support from business and political leaders who wanted us to succeed and become part of the fabric of the Chicago community. This ethos has served us well in building our firm, and I am proud of all we have brought to Chicago over the past three decades. I hope we continue to have such a meaningful impact in all the cities around the world that we call home.”
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Andrew Herrig is a financial expert and financial nerd, and the founder of Wealthy Nickel, where he writes about personal finance, part-time jobs, and entrepreneurship. As an avid real estate investor and owner of several businesses, he has a passion for helping others create wealth and shares his family’s experiences on his blog.
Andrew holds a Master’s degree in Economics from the University of Texas at Dallas and a Bachelor of Science degree in Electrical Engineering from Texas A&M University. He has worked as a financial analyst and accountant in many aspects of the financial world.
Andrew’s expert financial advice has been featured on CNBC, Entrepreneur, Fox News, GOBankingRates, MSN and more.