Support NeoGAF

[HStallion]

https://www.washingtonpost.com/news/on-leadership/wp/2016/04/27/chobanis-ceo-is-giving-up-to-10-percent-of-his-company-to-employees/

https://www.youtube.com/watch?v=nJW3zF322J0

On Tuesday, founder and CEO Hamdi Ulukaya announced that he would be giving all of his 2,000 full-time workers awards that could be worth up to 10 percent of the privately held company's future value if it becomes public or is sold. Each employee will be given "Chobani Shares" or award units, based on workers' tenure and role at the company, which could convert to cash or shares in the event of an initial public offering or a sale. The value of the awards are dependent on company performance, however, and have the potential to be worth nothing if the company doesn't meet performance metrics.

The New York Times, which first reported the news, said that if Chobani was valued at $3 billion, the average employee payout could be $150,000, and some long-tenured employees could see windfalls possibly worth more than $1 million. (A Chobani spokesperson declined to confirm those amounts.)

Ulukaya, a Turkish immigrant who has pledged to give away half his wealth and advocated for business leaders to do more to hire refugees, announced the news to workers Tuesday. He said in a memo to employees that the award was not a gift, but "a mutual promise to work together with a shared purpose and responsibility," he wrote. "How we built this company matters to me, but how we grow it matters even more. I want you to be a part of this growth -- I want you to be the driving force of it."

SHRM's Elliott notes that the decision also means Ulukaya is diluting his own stake, and whatever the motivations, there are likely business benefits. If employees end up holding substantial equity stakes, it can lead to more natural allies among investors, pre-empt unionization efforts, and create even more of a connection between workers and management, Elliott says. "It definitely creates an ownership culture," he says. "It focuses not only management but employees on bottom line and top line figures."

Just heard about this yesterday and as someone who eats Chobani nearly every day, sometimes several a day, this is great news. Really love when someone makes it big in an industry and decides to share the wealth and success with all the people who helped get them to that point. This will literally change some of these peoples lives, especially long time employees, in ways that I don't think they'd ever expect, a real game changer!

 

[rjinaz]

Just wait until he grows up and actually makes money. Then he won't want to give it away...

Seriously though, this sounds like a great guy.

 

[kamakazi5]

Dang, I chose the wrong yogurt company to work for.

 

[teruterubozu]

I hope his employees stay when they hit the jackpot.

 

[Epsilon-delta]

Just wait until he grows up and actually makes money. Then he won't want to give it away...

Seriously though, this sounds like a great guy.

Lol.

Yup, he's not making 'real money' in the slightest.

 

[LucidMomentum]

I hope his employees stay when they hit the jackpot.

If my office gave me that much as a "bonus", I'd cash it out and use it for other investments.

Then I'd keep working, but with a much more comfy safety blanket.

 

[HStallion]

I hope his employees stay when they hit the jackpot.

I think the idea is that they have always treated their employees very well so they wouldn't leave and this is just a much larger extension of that. A company willing to go that far to treat its employee's like they matter is one you want to work for as it means they have your back far more than a lot of other companies might. Its nice knowing you aren't some expandable grunt no one gives a shit about.

 

[Heshinsi]

Don't know why more companies don't do this (especially the ultra rich ones). Your employees now have a vested interest outside of needing a job, for the company they work for to do well.