A Louisiana factory boss rewarded his long-term employees with six-figure bonuses after selling his company for $1.7 billion.
As reported by the Wall Street Journal on Wednesday, Graham Walker, then-CEO of manufacturing and engineering firm Fibrebond, earmarked 15 percent of the proceeds for his 540 full-time staff, ensuring that each would receive payments averaging $443,000 spread over five years.
Why It Matters
Employees who spoke to the Journal described the bonuses as life changing. Recipients used the initial installments of their five-year payout to pay down debts and mortgages, contribute to college and retirement funds, and even open businesses of their own.
“Some spent it on day one, maybe even night number one,” said Walker. “Ultimately, it’s their decision, good or bad.”
What To Know
In April, the global power management company Eaton completed its acquisition of Fibrebond, which specializes in industrial infrastructure to serve data centers, as well as the telecommunications, industrial, and utility markets.
As detailed in the Journal’s report and filings with the Securities and Exchange Commission (SEC), terms of the sale stipulated that $240 million would be distributed to Walker’s employees over the span of five years provided they remained at the company, with the size of individual payouts determined by their tenure.
“Close to a quarter-billion dollars in employees’ hands felt fair,” Walker told the Journal. He explained that the payment reflected his gratitude toward employees who had stayed with the company over a tumultuous few decades, during which it navigated several nearly terminal challenges including a factory fire in 1998 and an exodus of customers following the dot-com bubble bursting in 2000.
While some had warned Walker against the idea, he added that the payouts from Eaton would ease the transition to new ownership.
What People Are Saying
Graham Walker, in a letter to his employees in April, wrote: “Last week was for the team that built Fibrebond. 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.”
A spokesperson for Eaton told the Wall Street Journal: “We came to an agreement with this second-generation, family-owned business that honors their commitments to their employees and the community.”
What Happens Next
Eaton has assumed responsibility for distributing the employee bonuses, which will be paid in six equal annual installments, the first of which went out in the second quarter of 2025.
Walker will be leaving Fibrebond on December 31.
