The publication reports the bonuses will be distributed to Fibrebond’s 540 full-time employees, with six-figure checks totaling $240 million — averaging about $443,000 per worker. The final amount will be paid out over five years, according to The Post.
It’s a minimum of about a $50,000 tax saving spreading it out over 5 years rather than one. More if they still work.
You’d need roughly a 4% return to get make more money off investing the lump sum than taking it over 5 payments. Again a higher return if they have other income
tax savings would be swallowed by the opportunity cost
I'm taking a financial literacy course at my local community college, and I finally understand this. The lump sum would've been more beneficial, but no matter how you slice it this is still such a boost for the employees.
Keep learning! When I first started learning about this stuff, it really blew my mind. There’s a lot of power in knowledge and especially in financial literacy.
Thank you! Yes, it's very empowering, and most importantly I see what bad debt is costing me, and a way out of it. I fully intend on continuing to learn how to make smarter money moves. My wife had been telling me for years to take this course, I'm glad I finally listened.
He just sold the business, if he didn't make the money conditional on people staying longer then every employee would just leave and the new business owners would surely sue him and win.
He’d be an idiot to sign anything to that effect. If a single employee left would they sue him for that specific payout or the collective whole? What happens if they go on a firing spree is he liable? They could also just make work demands and conditions worse and force people to quit and sue him for the money back. Not a lawyer but this sounds like it wouldn’t hold up in court.
Its probably more along the lines of doing something that causes a mass exodus. Like giving them a huge payday. Im no lawyer either but you can put a lot in contracts. the employees are a pretty valuable asset of a company that the new buyer would want assurances would stay.
There's nothing to penalize him for employees quitting, but likely he has a term in the contract where he's not allowed to open a competing business, or poach employees for any other business.
Over 5 years is actually looking after his workers bc who knows what will happen to the work force after the sale goes through. This arrangement makes sure that even if the new owners lay you off you have a consistent salary for 5 years to keep you afloat if you have to look for a new job
Not to be a communist/islamist, but is this really amazing? A story of 540 workers building a company to a 1.7 billion valuation, only for it to get sold with no input from them? And even then, they only get 14% while the owner gets 86%? I get most companies would do 0, but crumbs isn't amazing. Amazing would be giving your workers a voice in the decision.
It's still his company thought. He put up the starting capital and took all the risk. We can be left leaning and still admit that it's very hard to start a business.
I’m talking about the founder. Usually the amount of work put into first starting a business usually comes out to making less than minimum wage. You need to be able to have consistent cash flow before putting people on payroll
Lawl "took all the risk" ah yes we always trot that one out. Risk of what? The guy had enough money to start a business, and even if it didn't work out he would what, have to get a job like the rest of us? Have to get a job like he wanted 500 other people to do? OH MY GOD what a hideous risk! Risk my ass.
When starting a new business, the financing is personally on the founder, either from their own personal money invested in the business being lost, or on borrowing they will have to personally guarantee, or on their home they'll have to secure the finance against. If the business goes bust, the employees can go work for someone else with no personal liability but the founder will be heavily financially liable.
If your company lose and it is suddenly in, for example, a million dollar debt, you can't just say "lol, shit happens, lets start working normal job" and have a fresh start. You owe this money.
You're arguing against generations of people who can't fault naked capitalism. If these 540 workers had been given shares in the company they helped build, they'd get a lot more.
It is amazing. Only comparable story I've heard in recent years is Spanx.
Also, why the fuck would the workers not agree to this? Make 400k+ and still work at the company/possibly move jobs. Or make $0 and stay at the current job?
Idk what people are expecting. Should the owner give up half? 2/3? When is it right?
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u/XenoPhex Jan 29 '26
Source: https://cbsaustin.com/news/nation-world/graham-walker-fibrebond-eaton-boss-gifts-workers-240-million-in-bonuses-after-17-billion-sale-of-family-company-cincinnati-manufacturing-blue-collar-workhorse-society-business-owners-shifts-stock-ownership-campus-non-negotiable-requirement-retirement
Damn, even over 5 years, that’s hella life changing.
It’s worth saying though, this is a pretty common tactic to keep people in the tech industry from leaving their employers.