Exiting CEO left each employee at his family-owned company a $443,000 gift—but they have to stay 5 more years to get all of it

Core Insights - The sale of Fibrebond Corp. for $1.7 billion to Eaton includes a $240 million bonus pool for employees, averaging $443,000 per worker [1][2] - CEO Graham Walker mandated that 15% of the sale proceeds be allocated to employees, making it a nonnegotiable condition for the buyer [2] - The deal includes a five-year retention requirement for employees to receive their bonuses, aimed at ensuring a smooth transition to Eaton and retaining the workforce [3][4] Employee Impact - Reactions among employees to the bonus payouts ranged from disbelief to tears, with many using the funds for significant life changes such as paying off debts and funding education [5] - The bonuses are subject to heavy taxation, with nearly a third of the payouts claimed by taxes, leading to some employee dissatisfaction [5][6] - Employees over the age of 65 are exempt from the five-year retention requirement, providing some flexibility for older workers [6] Industry Trends - The Fibrebond case reflects a growing trend among company founders to share significant financial gains with employees during major exits, addressing the widening CEO pay gap [3]