KKR shared profits from a big sale with employees. Here's what they're doing with the windfall.
Private equity firm KKR distributed significant cash bonuses to employees at its portfolio company, Integrated Specialty Coverages, following a successful sale. The program aims to foster a sense of ownership among staff by sharing profits from private equity exits.
Why it matters
This initiative represents a shift in private equity labor relations, potentially setting a precedent for how portfolio company employees are compensated during corporate buyouts.
Bonnie Stewart, a longtime ISC employee, shortly after finding out about her payout. KKR Workers at ISC got a big payout when KKR sold the company, with one worker receiving $413,000. The payouts are part of a broader KKR initiative to spread employee ownership across private equity. We spoke to three workers about the experience and how they were spending their windfall. In his 12 years on the job, Justin Berk, a 44-year-old product manager at an insurance-tech company, had seen his employer get bought and sold twice. All he had received in return was a "pat on the back" at a company meeting. "A pat on the back is nice, but it doesn't pay the bills," he said.
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