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re: Louisiana boss hands workers $240M in bonuses after selling his company for $1.7 Billion

Posted on 12/26/25 at 8:47 am to
Posted by fr33manator
Baton Rouge
Member since Oct 2010
133562 posts
Posted on 12/26/25 at 8:47 am to
Imagine if you had quit back when you heard they were getting bought out
Posted by ponyman
Member since Nov 2019
435 posts
Posted on 12/26/25 at 9:40 am to
I think the "spread over 5 years" was a very wise decision on his part for all involved.
Posted by armytiger96
Member since Sep 2007
2086 posts
Posted on 12/26/25 at 9:45 am to
quote:

Imagine you are the company custodian, and this hits your lap.


I doubt it works that way. From my experience it may avg $440,000 per employee but the bonus will still be heavily skewed towards the management team vs the non management work force.

The company custodian will get a relatively nice bonus but I seriously doubt they are getting anything close to the avg bonus.

This post was edited on 12/26/25 at 9:47 am
Posted by BenDover
Member since Jul 2010
5551 posts
Posted on 12/26/25 at 10:12 am to
He wanted to find a way for the idea to be mutually beneficial to the existing employees & the acquiring company. The best way to do that, is to have the acquiring company earmark the bonus money for employees on a 5-year vesting schedule. That way 1) the employees are able to get the money plus keep their jobs for at least 5 years, & 2) it ensures seamless transition for the acquiring company without the headache of having to backfill employees who left due to change in ownership. Now the acquiring company (essentially) has 5 years to build relations with the existing employees and orient them into their culture with the idea of hopefully keeping them beyond.

Additional benefits lie on the tax side. If Walker paid the employees the bonus out of his proceeds that money would've been taxed 1) when Walker received it from the purchasers of the company and 2) later when the employees received it from Walker.
Posted by jflsufan
Baton Rouge, LA
Member since Mar 2013
5019 posts
Posted on 12/26/25 at 10:25 am to
This is similar to how my company structured our ESOP. All employees get stock in the company based off of annual compensation. That stock vests over a 5-year period. In addition to stock received based on compensation, top management received SARS awards that vests in 3 years that are tied to tenure and company performance. It's a good way to tether people especially key people to your organization.
Posted by LCboi
Member since Mar 2015
391 posts
Posted on 12/26/25 at 10:43 am to
The only real question. Where does he Fit in NIL for LSU Athletics?
Posted by Demonbengal
Ruston
Member since May 2015
4965 posts
Posted on 12/26/25 at 12:09 pm to
quote:

The only real question. Where does he Fit in NIL for LSU Athletics?


He did get a masters from LSU, but attended Suwanee. Probably more likely to donate to mission work than NIL.
Posted by 756
Member since Sep 2004
15780 posts
Posted on 12/26/25 at 12:27 pm to
And most people who sell their companies don't give their employees anything. Kudos to owners who acknowledge they count have done it without their employees
Posted by drexyl
Mingovia
Member since Sep 2005
23343 posts
Posted on 12/27/25 at 5:07 am to
quote:

Additional benefits lie on the tax side. If Walker paid the employees the bonus out of his proceeds that money would've been taxed 1) when Walker received it from the purchasers of the company and 2) later when the employees received it from Walker.
it’s likely an asset sale - if walker paid the employees he would get the deduction. It’s not taxed twice. In fact he gets a decent portion taxed at capital gains rates and an ordinary deduction for the wages paid out. Tax arbitrage on that is about 15%.

The vesting thing sounds more like phantom stock. He awarded people who stayed with him for 5 years. It’s not that they stay with the buyer for 5 years.

It’s a good thing he did - not really making sense why the buyer would care what he did with his money.
This post was edited on 12/27/25 at 5:14 am
Posted by AUbagman
LA
Member since Jun 2014
11155 posts
Posted on 12/27/25 at 6:45 am to
quote:

Agreed. Unfortunately, drama and bullshite “sell” much more than good feeling news/stories. Ironically it’s the feel good stories we all crave deep down, but somehow keep gravitating to the bullshite. I’m sure there’s a lesson to be learned in there somewhere


I’m not a psychologist or anything, and I probably need one, but I think the easier life gets the harder we try to make it. We evolved fighting to survive. Now our biggest problem is typically self induced ($1k car notes). So as a society, there is a lot of self hatred and the outlet is typically unleashing it digitally, through addiction, or seeking out stories that make you think “well I could be worse”.
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