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US man sold firm for $1.7 billion What he did with money left his employees shocked
Graham Walker ensured that his employees received a cut of the money he earned from selling his family business.
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A businessman from a small town in Louisiana, United States, became a billionaire when he sold his family business last year. But what he did next would be remembered by his employees for the rest of their lives.
Graham Walker ensured that his employees received a cut of the money he earned from selling his family business. He distributed $240 million (approx about ₹2,305 crore as per current exchange rate) among 540 members of his staff.
Walker sold his family’s company, Fibrebond, last year for approximately $1.7 billion, according to the Wall Street Journal. However, his condition for the prospective buyer was that his employees would receive 15 per cent of the acquisition proceeds.
How much did each Firebond employee receive?
Graham Walker told WSJ that he rewarded his employees as a gesture of gratitude for sticking with the company even during the tough times.
The payout started in June last year, with the average bonus going at $443,000, payable over five years. This is provided the employee remained with the organisation for the specified period.
The former CEO recalled that some of his employees thought it was a prank when the distributions started. There were also those who became very emotional.
How did the employees use the bonus?
Walker told the outlet that the staff spent the money on various things, including paying the mortgage, slashing debt, buying cars, paying college tuition, and even building retirement funds.
The 46-year-old recalled, “Some spent it on day one, maybe even night number one,” adding, “Ultimately, it’s their decision, good or bad.”
One of the employees, who started working at the company in 1995 at an hourly wage of $5.35 and now leads a team of 18 people, told the outlet that she used the bonus to pay off her mortgage. She also fulfilled her dream of opening a clothing boutique.
“Before, we were going paycheck to paycheck. I can live now; I’m grateful,” she said.
Usually, employees receive a large payout when a company is sold if they own shares. What sets Walker’s gesture apart is that the employees who received the bonus don't own a piece of the business.
About Fibrebond
Fibrebond was started by Graham Walker’s father, Claud Walker, in 1982. In 1998, it faced a major hurdle when its factory burned to the ground. Though business took a hit, Claud continued to pay employees' salaries. Eventually, the company found a stable ground and business flourished.
However, during the dot-com bubble burst, it faced a major crisis that led to the layoff of hundreds of employees.
In the mid-2000s, Graham Walker began running the company alongside his brother. Although the business was going through a tough time, the staff remained loyal. Slowly, things began to change, and Walker even introduced group bonuses for teams that met safety and other targets.
The turnaround came with a risky $150 million investment when the company started building modular power enclosures for data centres. Eventually, Fibrebond’s sales climbed nearly 400 per cent and drew attention from larger industrial players.
