Tuesday, March 10, 2009
As many companies are being forced to cut back on spending, including salaries and staff, employee satisfaction has not been a huge priority during these tough economic times. However, Steve Wulchin and Jonathan Sawyer, founders of FreeWave Technologies Inc., have decided to break the trend of greedy CEOs and, as a reward for the company's success, are sharing $9 million of investors’ money with the companies fewer than 100 employees.
The $9 million is part of a $113 million private-equity investment deal that FreeWave made in 2007. The bonus shares, which have been paid out in three installments, were determined according to individual performance. The final payment was handed out on Thursday.
Wulchin and Sawyer explained that they have always made it clear when talking to investors that they wanted to share any equity investment with their employees. Investors were also keen on the idea.
Needless to say, FreeWave employees are pleased and grateful as well.
“This is something that in today's economy Steve and Jonathan don't have to do, and yet they've chosen to do it,” said Tim Ake, who has been a production manager with FreeWave for about five years. “That inspires me to go and do likewise,” added Ake, who normally gives some of his bonuses to his church and to charity.
“We're fortunate to have great bosses,” said Melanie Duran, a 33-year-old production lead who is using the extra money to close on buying her first house.
The Boulder-based company says it has had profits every month since 1995, when it hired its first employee, and boasts no layoffs. Employees also get company-funded retirement plans and regular bonuses based on profits and growth.
FreeWave makes wireless data communication tools and radios for applications such as controlling unmanned vehicles or monitoring remote equipment. FreeWave products are used in such industries as the military, security, agriculture, utilities, oil and gas.
Boulder Company Shares $9 Million with Employees (by Catherine Tsai, Associated Press)
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