Skip to comments.What Would You Do With an Extra $2 Billion? This Startup Is Handing It Out to Employees
Posted on 12/22/2018 5:48:53 PM PST by 2ndDivisionVet
What would you do with an extra $1.3 million? The 1,500 employees of e-cigarette maker Juul are going to get the chance to answer that question. Although the company has made no public announcement, insiders told CNBC that the company had received a one-time dividend payment of $2 billion as part of an investment deal with Altria (the parent company of Philip Morris), which is spending $12.8 billion to buy 35 percent of Juul's shares. The sources inside Juul, who remain anonymous, say that the company decided to divide that bonus among its employees.
It's a brilliant, brilliant move. To begin with, the company just turned into the employer everyone wants to work for. Commentators on CNBC wryly noted that the rest of us are all in the wrong business. That's a big asset in these days of historically low unemployment, with companies battling for talent, especially tech talent. If it weren't for the talent wars and the difficulty in hiring skilled employees these days, it's a safe bet that Juul would have decided that increased R&D or a new manufacturing facility or some other asset for the business would be the best use of its $2 billion windfall.
Speaking of Juul's tech talent, it seems likely that they, along with the company's senior executives, might get the best bonuses under this deal. The anonymous sources report that the $2 billion will be divided up according to longevity with the company and how much stock they own, among other factors. The Juul website says that every employee is a "stakeholder" in the company, but with stock options a popular incentive in Silicon Valley, my guess is that the most highly skilled, most hard-to-recruit employees are also the ones with the most stock....
(Excerpt) Read more at inc.com ...
$1.3 million average payout per employee. Seems very silly if handed out in cash.
Yup. If they did that a whole lot of people might be quitting soon!
Sad when "brilliance" means meeting the market price for what you want to buy.
The irs will enjoy taxing the bonus well.
They’ll figure out a vesting schedule to put golden handcuffs on employees.
How about a fund to treat all the teenagers using this crap when they need medical care in 15 years so ....i...the taxpayer don’t have to pay for that.
With that kind of money, I could pay off most of my student loans ...
Two chicks at one time....
It’s a pretty sad situation, when, you turn Flavored Nicotine, which is exactly what JUUL is , upon a populace that has been so anti-cigarette for so many years. The cigarette companies have 100% won the “get ‘em hooked young wars” after all. Here in L.A. the number of people on the freeway, at any given time, that are Inhaling that JUUL CRAP, is astonishing and disturbing.
That’s what all the companies I worked for did, too. Then they keep granting more options with a similar four year vesting schedule to keep you on board after the initial four years is over. They keep making it harder and harder to leave.
$2 billion in bonuses? Sounds like a windfall of tax revenue. Taxing the recipients at around 50%, that could go a long way towards helping to pay for the wall.
Who would quit at age 30 for a million dollars? If they stayed they would make much more.
People with little foresight or skill can run through 2 or 3 million very quickly - within a year or two. I’ve seen it.
I would build section 8 housing in gated communities
I thought that the object of a corporation was to make money for its INVESTORS, at the same time providing jobs for the people that they hire. If the employees are also the owners then this situation makes sense, otherwise it would be a tough sell to those who actually own the company.
I didn’t know what this company did until I read your comment and then went to the source to read the rest of the article.
Interestingly, when I posted this on social media, it pulled a different headline (must have been changed, for reasons I’d like to know):
“E-Cigarette Maker Juul Just Gave Its Employees an Average $1.3 Million Bonus”
Btw, you’re spot-on, of course.
Any relation to Zuul?
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