Generous Fibrebond boss Graham Walker hands out $358m in bonuses to 540 workers

It’s got to be one of the most generous acts by a boss ever.

Factory owner Graham Walker has handed out $240 million (A$358m) in bonuses to his 540 workers — a magnanimous gesture that equates to a six-figure sum for each.

The average bonus rings in at a whopping $443,000 (A$660,000) but some long standing employees are getting even more.

Mr Walker and his family started Fibrebond in Louisiana, making enclosures for electrical equipment. Earlier this year he sold the business for $1.7b (A$2.5b), but made the sale contingent on his employees getting a slice of the sale proceeds, paid out over five years.

When the now former CEO informed workers of their unexpected good fortune their reactions were varied, with some getting emotional while others were sure they were being pranked.

Mr Walker told the Wall Street Journal that when he handed over the bonus, staff were left in disbelief.

Since then some have used the windfall to pay off mortgages, buy cars, pay college tuition and fund retirements. One took his entire family on a holiday to Cancun, in Mexico.

“Some spent it on day one, maybe even night number one. Ultimately, it’s their decision, good or bad,” Mr Walker said.

Employee Lesia Key, who had been with the company for 29 years, joining when she was 21, cried when Mr Walker gave her the good news.

The mother-of-three said her family had been existing paycheck-to-paycheck before Mr Walker changed her life with the bonus, which she has used to pay off her mortgage and open a clothing store.

“Before, we were going paycheck to paycheck. I can live now; I’m grateful,” she told the Journal.

It’s rare for employees to benefit financially from the sale of their company, unless they own shares.

When it came to negotiate the sale of the company, Mr Walker told prospective buyers 15 per cent of the proceeds of any deal would have to go to his employees as a reward for their loyalty and dedication.

“Close to a quarter-billion dollars in employees’ hands felt fair.”

Mr Walker said he enjoyed watching the reactions of his employees and there was just one thing he asked of them, to let him know how the money changed their lives.

“I hope I’m 80 years old and get an email about how it’s impacted someone,” he says.

Eaton, the company which bought out Fibrebond, said, “We came to an agreement with this second-generation, family-owned business that honours their commitments to their employees and the community.”