The Greek yoghurt maker says the shares being distributed would amount to 10 per cent of the company’s future value in the event of a sale or initial public offering. It says each of its approximately 2000 fulltime employees will receive shares based on their role and time spent with the company.
Chobani says CEO and founder Hamdi Ulukaya is meeting with employees this week to tell about the plan in person.
“This isn’t a gift. It’s a mutual promise to work together with a shared purpose and responsibility,” Ulukaya wrote in a letter to employees. The plans were first reported by The New York Times. Chobani has helped lead the surging popularity in Greek yoghurt, but has faced more competition in recent years.
“I’ve built something I never thought would be such a success, but I cannot think of Chobani being built without all these people,” the Turkish-born founder told the newspaper.
“Now they’ll be working to build the company even more and building their future at the same time.”
Chobani was value was estimated at $US3 billion ($3.87 billion) to $US5 billion ($6.45 billion) when it received a loan from private equity firm TPG Capital two years ago.
Based on the $US3 billion valuation, the average employee payout would be $US150,000 ($194,000). The longest-serving employees, however, will receive shares possibly worth up to $US1 million ($1.3 million).
Rich Lake, lead project manager, was one of the company’s original five employees. He said he did not expect the shares to change his life much. “I’m not one for living outside my means,” he told The New York Times.
“It’s better than a bonus or a raise,” he said. “It’s the best thing because you’re getting a piece of this thing you helped build.”
Last year, the CEO of a payments firm made headlines when he cut his own salary by 90 per cent to set a $US70,000 ($91,000) minimum wage at his firm.
While initially lauded for the move, Gravity Payments CEO Dan Price soon fell on hard times, telling media he was forced to rent out his home to make ends meet.
It later emerged Mr Price was facing a costly lawsuit from his older brother and co-owner of the company for allegedly paying himself too much in the first place.
This article was originally published on news.com.au
