American CEO Gives Rs 2,100 Crore In Bonuses To Workers After Selling Company

An American CEO is being widely celebrated for his generosity and corporate goodwill after distributing approximately Rs 2,155 crore ($240 million) in bonuses to his 540-odd employees. Graham Walker, 46, the now-former CEO of Fibrebond, which makes enclosures for electrical equipment, sold his company to Eaton Corporation earlier this year for (Rs 15,265 crore) $1.7 billion and decided to give a portion of it to employees, even though none of them owned stock.

According to a report in the Wall Street Journal, Walker did not agree to sell his company until the prospective buyers earmarked 15 per cent of the proceeds for the employees. In June, the payouts, averaging $443,000 per worker, were triggered, spread over five years.

The day the money was distributed, some of the employees could not believe while others thought they were being pranked. Since then, some have used the money to clear debt, buy cars, pay college tuition fee or save it for retirement.

Lesia Key, one of the employees, said she was grateful for the bonus. Key started at Fibrebond in 1995 at the age of 21. She rose through the ranks and, as of the start of this year, led a team of 18 people and managed the company's facilities on 254 acres.

“Before, we were going paycheck to paycheck. I can live now; I'm grateful," said Key, who made only $5.35 an hour at the beginning.

Quizzed if the family considered bigger bonuses for the employees, Walker said: “Close to a quarter-billion dollars in employees' hands felt fair.”

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'Man Of Character'

As the news of bonuses went viral, social media users lauded Walker for his generosity and for looking after his trusted employees. 

"Hats off to him. That was very kind and generous of him," said one user, while another added: "A superb story and one of a true capitalist.  This man made a fortune and insisted that his employees benefit for five years after the sale of his company."

A third commented: "Now that's what I would call a man of character and class. So tired of hearing all these CEOs making 10's of millions in pay and giving employees minimal wage increases."

A fourth said: "Wow, a truly kind and generous man who appreciates that his employees made the company so valuable. Not many bosses like that out there any longer."

Fibrebond was started by Walker's father, Claud Walker, in 1982, alongside 11 others. From the factory burning to the ground in 1998 to the dot-com bubble crisis, Fibrebond managed to survive with employees staying loyal through the highs and lows.

The company made a risky bet by investing $150 million to expand capacity to build infrastructure for data centres. It paid off in 2020 as the market exploded, leading to a chain of events which culminated with employees receiving hefty bonuses in their accounts.