Graham Walker, a Louisiana businessman, rewarded his 540 full-time employees with a combined $240 million in bonuses following the sale of his family-owned company Fibrebond.
The generous amount averaged about $443,000 per employee to be paid over the next five years.
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Who is Graham Walker?
Graham Walker,46, is the son of Claud Walker. Claud founded Fibrebond in 1982 in Minden, Louisiana. The company originally focused on telecom and electrical equipment enclosures.
The company had, over the years, weathered economic ups and downs, including a devastating factory fire in 1998. At the time, as well not a single employee paycheck or client order was missed. Moving production outdoors allowed the business to continue operating during the reconstruction process.
There were other storms, like the dot-com bust and layoffs that significantly reduced its workforce during lean years.
{{/usCountry}}There were other storms, like the dot-com bust and layoffs that significantly reduced its workforce during lean years.
{{/usCountry}}Then Graham Walker and his brothers took over the operation at Fibrebond in the mid-2000s. They focused on selling assets and paying down debts while seeking new business opportunities. A pivotal move came when the company made a $150 million investment to expand into modular power enclosures for data centres. Larger firms were interested as sales increased.
The $240 million bonus condition
Walker made it plain at the start of the takeover negotiations that any buyer would have to honor his pledge to the staff. He remained steadfast in the face of advisors' cautions and worries about complicated legal and tax issues.
Eaton, the power-management company that acquired Fibrebond for $1.7 billion, ultimately accepted the condition and set aside 15% of the sale proceeds for the staff as employee bonuses.
Walker told The Wall Street Journal the reward was intended to honor dedication rather than ownership. Workers have experienced years of low orders, manufacturing fires, layoffs, and compensation freezes. They stayed when the business was having difficulties.
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Real-life Santa Claus
Walker explained this generous move by saying that his faith motivated him to make the kind gesture.
"It's Christmas season, I am a person of faith, and the faith that I have compels me to do it..." Walker told NBC.
Leisa Key, a 51-year-old worker, who worked for the company for 29 years, said, “Before, we were going paycheck to paycheck. I can live now.” According to reports, she opened a clothes store in a nearby town and paid off her mortgage with her bonus.
Employees started getting sealed envelopes with information about their specific rewards in June. According to The Journal, some of them were overcome with emotion, while others believed it to be a joke.