Graham Walker, outgoing CEO of Fibrebond, gave his 540 full-time staff a Christmas they will never forget. He doled out $240 million in bonuses after selling his family-founded manufacturing and engineering firm for $1.7 billion.
In case you are having some trouble doing the math, that amounts to payments averaging $443,000 for each and every employee of the company. The company will spread the payments out over five years, or $88,600 per year for each employee.
According to a report by the Wall Street Journal, Graham Walker made sure to set aside 15 percent of the sale price of his company for the employee bonuses. In fact, he told all prospective buyers that it was necessary for the sale to even take place.
The employee bonuses were a requirement for any sale of the company to take place
Fibrebond employees who spoke to the Wall Street Journal said they have used the bonus to pay down debts, purchase cars, contribute to college and retirement funds, and, in some cases, open their own businesses.
“Some spent it on day one, maybe even night number one,” said Walker. “Ultimately, it’s their decision, good or bad.”
“It was surreal, it was like telling people they won the lottery. There was absolute shock. They said, ‘What’s the catch?'” Fibrebond business development executive Hector Moreno said.
“Last week was for the team that built Fibrebond,” Graham Walker wrote to his employees. “Men and women who know the pain required to build this business got to experience the joy of shared success. The deep respect displayed among employees was profound and sacred. Being in its presence was the highlight of my time at Fibrebond. In time I hope to understand fully what it means. I am grateful beyond measure for the opportunity to work with such people.”
Walker, who will be leaving the company as CEO on December 31, said, “I hope I’m 80 years old and get an email about how it’s impacted someone.”