‘World’s best boss’ gives out $240 million worth of bonuses to staff
A CEO distributed $240 million in bonuses to his employees after the company was sold, with one demand.
Graham Walker is scheduled to step down as CEO of Fibrebond on December 31, following the company's sale to the power management company Eaton for $1.7 billion.
According to the company's website, Fibrebond is a steel-structure manufacturer, particularly for telecommunications and data centres, founded in 1982 by Walker's father, Claud Walker.
Graham and his brother took over the company in the mid-2000s, and in April this year, they announced their merger with Eaton, with the CEO writing in a letter: "Our family fulfilled a commitment that we would all win together, and over two days, we shared details of that commitment."
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The Wall Street Journal reports that Walker told prospective buyers that 15 per cent of the sale proceeds should be set aside for employees at the company.
Without the stipulation, he was concerned that employees at the company, who did not own any stake, could walk out.
As a result, a buyer agreed to the condition, and now over 500 workers at the companies are set to receive six-figure bonuses from the deal to sell the company, with an average value of around $443,000, to be paid out over the next five years, so long as they remain with Fibrebond.
Hector Moreno, a business development executive at Fibrebond, recounted breaking the news to people who would be receiving the life-changing amount of money.
"It was surreal, it was like telling people they won the lottery," said Morena. "There was absolute shock. They said, 'What's the catch?'"
Among the employees receiving the bonus is Lesia Key, who has worked at the factory for 25 years and was paid just $5.35 an hour when she started in 1995.
Breaking down when she opened the letter informing her of the payment, she said: "Before, we were going paycheck to paycheck. I can live now."
Meanwhile, assistant manager Hong 'TT' Blackwell managed to use her payment to retire at 67.
Blackwell spent more than 15 years working in the logistics branch of Fibrebond after immigrating from Vietnam, and said that she had spent part of the money on a Toyota Tacoma for her husband, and set the rest aside.
"Now I don't have to worry," she said. "My retirement is nice and peaceful."
Walker revealed that he wanted to give the money to his employees because he wanted to do something good, particularly for the town of Minden, Louisiana, where the company is based, as it has seen its fair share of job losses. He also wanted to reward those who'd stuck with Fibrebond through harsh times.
Graham asked employees to share with him how the money has changed their lives, adding: "I hope I'm 80 years old and get an email about how it's impacted someone."
In a statement shared with the Wall Street Journal, a company spokesperson said: "We came to an agreement with this second-generation family-owned business that honors their commitments to their employees and the community."
He will be departing the company on Wednesday (31 December), as he told The Wall Street Journal: "It’s time, for the good of the business and all involved."
Kit Roberts