US businessman shares ₹2,155 crore bonus with employees after company sale
Washington: An American businessman has drawn global attention after distributing nearly ₹2,155 crore (about $240 million) in bonuses among his employees following the sale of his company, in a rare instance of wealth-sharing in corporate America.
Graham Walker, 46, former chief executive officer of electrical equipment enclosure manufacturer Fibrebond, ensured that the company’s roughly 540 employees directly benefited from its sale to Eaton Corporation earlier this year for ₹15,265 crore (around $1.7 billion). Despite employees not holding any company stock, Walker insisted on allocating a share of the proceeds to them before finalising the deal.
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According to a Wall Street Journal report, Walker refused to proceed with the sale unless prospective buyers agreed to reserve 15 per cent of the total proceeds for employees. The payouts were triggered in June and are being distributed over five years, averaging approximately $443,000 per employee.
Several employees initially believed the announcement was a joke. Later they used the money to clear debts, buy vehicles, pay for higher education or strengthen their retirement savings.
Lesia Key, who joined Fibrebond in 1995 at the age of 21, said the bonus had transformed her life. Having started at an hourly wage of $5.35, she rose through the ranks and was, by early this year, leading a team of 18 people and overseeing facilities spanning 254 acres. “Before, we were going paycheck to paycheck. I can live now; I’m grateful,” she was quoted as saying.
Responding to questions on NBC show, about whether the Walker family considered distributing an even larger share, Walker said placing “close to a quarter-billion dollars in employees’ hands felt fair”.
Founded in 1982 by Walker’s father, Claud Walker, along with 11 others, Fibrebond weathered multiple crises over the decades, including a major factory fire in 1998 and the collapse of the dot-com bubble. Employees, the report noted, remained with the company through difficult periods. In later years, Fibrebond made a significant $150 million investment to expand its capacity to build infrastructure for data centres.
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
