Unbelievable!
A true example of how much we can do better in the corporate world.
A new equity ownership model for every single person in the company, all 800 of them, drove a 10x ROI over 7 years for investors, as well as massive payouts to all team members on their equity.
"Upon KKR’s acquisition of C.H.I., all 800 employees – from those who work in the factory to those who drive trucks to those who work in the corporate office – were made owners in the business. This was a free, incremental benefit for anyone earning less than $100,000 and was not in exchange for benefits, wages or wage increases (wages increased 12.5% in 2021 and 7% in 2020)."
"The return on this ownership to employees was substantial due to the exceptional performance of the business. At exit, in addition to approximately $9,000 in dividends received since 2015, hourly employees and truck drivers will receive, on average, approximately $175,000 as a payout on their equity – with the most tenured employees earning substantially more."
Amazingly, and more importantly:
"As part of the overall package, all 800 colleagues will receive 12 months of pre-paid personal financial coaching and tax preparation services through Goldman Sachs Ayco Personal Financial Management and Ernst & Young."
I recently started to believe such a mindset of abundance and transparency will bring limitless joy and prosperity to everyone involved. Now I have a true example and a real-world proof I can refer to.
I hope we will see more investors, corporates, CEOs, and all levels of leadership follow the lead.
Sources:
A true example of how much we can do better in the corporate world.
A new equity ownership model for every single person in the company, all 800 of them, drove a 10x ROI over 7 years for investors, as well as massive payouts to all team members on their equity.
"Upon KKR’s acquisition of C.H.I., all 800 employees – from those who work in the factory to those who drive trucks to those who work in the corporate office – were made owners in the business. This was a free, incremental benefit for anyone earning less than $100,000 and was not in exchange for benefits, wages or wage increases (wages increased 12.5% in 2021 and 7% in 2020)."
"The return on this ownership to employees was substantial due to the exceptional performance of the business. At exit, in addition to approximately $9,000 in dividends received since 2015, hourly employees and truck drivers will receive, on average, approximately $175,000 as a payout on their equity – with the most tenured employees earning substantially more."
Amazingly, and more importantly:
"As part of the overall package, all 800 colleagues will receive 12 months of pre-paid personal financial coaching and tax preparation services through Goldman Sachs Ayco Personal Financial Management and Ernst & Young."
I recently started to believe such a mindset of abundance and transparency will bring limitless joy and prosperity to everyone involved. Now I have a true example and a real-world proof I can refer to.
I hope we will see more investors, corporates, CEOs, and all levels of leadership follow the lead.
Sources:
- The announcement video by Peter Stavros, Co-Head of KKR, the Private Equity firm behind the Ownership Works model.
- The lovely coverage of the story by Business Wire (from which I quoted above).
- CNBC video coverage of the announcement along with a few words by some of C.H.I. Overhead Doors' team members.