Bill Phelps, CEO of Dave’s Hot Chicken, helped 19 employees turn the billionaires after selling his company for $1 billion. The California-based restaurant chain has been founded in 2017 and has been in over 100 locations across the United States. Private equity firm Roark Capital has acquired a majority stake in the company that closes its deal with $1 billion.
However, unlike other CEOs, Phelps did not give up the money for himself, but decided to share it with 19 employees. He thanked each of them for providing services to build the company from scratch. Phelps revealed to CNBC that he intentionally created a billionaire because he had always wanted to help people from a young age.
Billionaire CEO turns 19 employees into billionaires
Apart from creating 19 billionaires, he provided all his employees with annual salary as a bonus for their hard work. “I’ve had investors saying, ‘You’re giving too much money, this isn’t right.’ He said. “They were absolutely right as investors who stood up for other investors. They have fiduciary duties, but I have an obligation to those who created this business and I was loyal to caring for all the stakeholders in this transaction.”
All corporate employees, store managers and assistant managers received bonuses equivalent to their annual salary. Phelps revealed he believes in giving employees credit for what is rightfully the case. His company was sold for $1 billion, but more than a dozen people ousted billionaires from his goodwill.
He also revealed that he is being hacked by investors who say he lacks compensation knowledge for his employees. “I was told by one of the investors that there was no concept of what management should look like, and he’s right because he doesn’t see them as management. I see them as partners on this journey and compensate them as partners on the journey.” He summed it up.
