DIY stimulus: CEO gives workers $1000 each from his own pocket
Jack Windolf, the CEO of Bollinger Insurance, recently gave his 434 employees a surprise gift: out of his own pocket, he paid each of them $1000. The bonuses, which Windolf called "a mini economic stimulus package," came from $500,000 in deferred compensation that he received when he sold 51 percent of the company last year. Rather than spend the money on himself, he chose to share it with his workers.CEOs have had a rough time of it lately. With outrage brewing about the scandalous bonuses that went out to executives at Lehman, AIG, Merrill Lynch and other huge companies, it's become increasingly lonely at the top. And for good reason.
After all, even a cursory analysis of the evolution of executive compensation over the past few decades is enough to bring out one's inner Karl Marx. By now, the statistics are pretty well-known, but let's review them one more time: in 1982, the average CEO made 42 times as much as the average worker; by 1990, they were making 107 times as much as their employees, and by 2007, 275 times as much. This meant, incidentally, that the average CEO made more in one workday than the average employee made all year.
Some studies have suggested that employees don't begrudge their bosses the extra pay as long as the company is doing well. However, even by that metric, CEO compensation has grown out of control. With companies lining up to take government bailouts, it is worth asking exactly what companies are getting for their money. One can only imagine the feelings of AIG's rank-and-file employees, and the attitude among low-level workers at Merrill Lynch must be downright mutinous.
In this context, Windolf's decision is particularly meaningful. Faced with the option of hoarding over half a million dollars, he chose instead to distribute it among all those responsible for his company's success. In a fundamental way, he conveyed a belief that his workers add value to the company, and deserve to share in that value. While $1000 probably won't make all that much of a difference in the lives of most of Bollinger's employees, the respect Windolf has shown his workers is sure to yield huge dividends.
Maybe other CEOs should take note.



























Reader Comments (Page 1 of 38)
4-04-2009 @ 1:15AM
Mike Young said...
This was as it should be. Verry nice, and his company.
The CEOs we read about deserve a 9mm or 45cal bonus!
When you are ready call me-
Mike
Reply
4-05-2009 @ 11:25AM
tony said...
you're an idiot.
4-05-2009 @ 11:51AM
Manuel said...
What made those 400+ deserve an extra $1000. They should be taxed at 90%. Mob envy took over in the French Revolution. Mike "45cal. or 9mm bonus" would have fit in well there. In fact, he should move to France.
4-05-2009 @ 11:43AM
robtheblogger6 said...
People can bitch and moan about CEOs but guess what : they don't give a sh*t what you think. Why? Because you can't do a damn thing about it. There's no rioting and i haven't hard of any CEOs being 'taken out'. The "common " people take it up the ass like good little sheep.
4-05-2009 @ 12:03PM
Mark said...
First, I would hope that you are a "legal" gun owner and an NRA member. There are many in this country who would take away our right to bear arms. You infer that we should shoot people that we disagree with. It's comments like yours that make things worse for all legal gun owners. Try getting educated about what it means to own a gun in this country. Support our right to self defense, don't undermine it.
4-05-2009 @ 12:03PM
Ray said...
Some are to blame, but all are resopnsible.
4-05-2009 @ 12:09PM
L.J. said...
It takes a big man to do what he did. $1000.00 helped his employees, and in the long run it will help him too.
Too bad there are not more CEO's who think of their employees and their family.
Thank you Mr. Jack Windolf.
4-05-2009 @ 12:49PM
pj said...
i guess the world class goobers whom slam this guy for doing this, would probably give the money back......not
4-05-2009 @ 1:15PM
wayne said...
We could all use a little more good news, as Jack Windolf has so honorably provided.
I say, HOOWAH to Jack Windolf. (sp)
4-05-2009 @ 1:25PM
Mike said...
Is this the Mike Young that works at Bowne?
4-05-2009 @ 1:34PM
Rupert said...
They should all be chased by mobs with pitch forks and torches!
I've heard radio commentators argue that government shouldn't be involved as when the President asked GM's chairmen to step down.
Well, that's fine. No bailouts either. Let the market sort it out. If you want OUR money- you should be accountable!!
If you ran the company into the ground you DO NOT deserve a bonus! Another employee gets a pink slip for a poor job, why not them? ANY exec who askes for CORPORATE WELFARE, should be fired and stripped of HIS parachute!
We need to all wake up and tell congress that WE AIN'T GONNA TAKE IT ANYMORE. Let the CEOs go to food banks and see how degrading it feels. Be outraged!
4-05-2009 @ 1:45PM
Shan said...
Wish our country was made up of more men like Mr. Windolf. He knows the companys success is because of everyone who works for it, not just one person. I does promote company loyalty as well & there workers will not leave for a nickel more because if they go somewhere that doesn't appreciate there employees that company may go under just like others are doing. Also yes, it cost more to buy American but you are keeping your money in our country where it should stay or else China will own us very soon, sooner than you think. God Bless America!
4-05-2009 @ 1:54PM
Patrick said...
GEEZE! Bitter, bitter people! If you ask me, this guy at least, has a soul. All I see is tough times and instead of clincning his gready fists like the rest of the herd this guy is sticking his neck out; to the tune of half-a-mil. The US needs more people like him!
4-05-2009 @ 2:14PM
Lisa said...
I agree Mikey, it is amazing how greedy people really are. Hats off to the CEO of the Bollinger Co. We need more like him.
4-05-2009 @ 2:14PM
Sparkles Pederson said...
These employees won't be taxes at 90% because that extra $1000 only brings them up to about $30,000 a year. However those corporate raiders making 120 MILLION should be taxed 90%. It's what was done during the last Great Depression, and it's what we need to end this one.
And the CEO ends up with "only" 12 MILLION after taxes. He can make ends meet on that, don't you think?
4-05-2009 @ 7:32PM
SuzQ said...
In light of all that has transpired with recent events (NY shootings)to make a comment --or joke-- as u did could be interpreted as threat...
So sad-- so scary-- so serious...
Are the CEO's greedy? ..Absolutley.....however, you took it to a level even lower than them..
4-05-2009 @ 3:03PM
John said...
Wow Mike, you're a deep thinker aren't you? Your choice of action would be to create a gang and shoot them with a 9mm or 45? The higher end pay of a CEO (while extremely high) is yours for the taking somewhere at some time if you choose to work your ass off and actually produce something. Somehow I doubt you will ever choose to commit yourself to something bigger than yourself.
4-05-2009 @ 2:38PM
Agent White said...
Mike you need to watch what you say, what you just said is actual terms to be arrested and charged with threatening ones life, You are also offering a hit service, please be advise that I will be contacting my supervisor and we will be contacting this news company and will be pursuing you
4-05-2009 @ 5:21PM
Captain said...
Mike, I gotta say I like your style! Lets keep hope alive for this country, the younger generation. If you were a crook, a horse thief, in this country you were hung, no complaints from others. The horse thiefs have gotten so good at stealing we don't even know. Our generation is, mostly, already blind with baby fed consumerism.
This is till the wild west, obviously;) Know your thieves, hang them high, strong survive:)
4-06-2009 @ 8:51AM
tmcerc said...
You are right, this is a nice thing for the man to do.
If the economy was better would he gave it away???