Belleville, Michigan- Bob Thompson sold his asphalt and paving business for $422 million. He then took $128 million of it, after taxes, and distributed it among all 550 employees at the plant.
Hourly workers that had retirement plans received $2,000 for each year worked. Salaried employees that had no retirement plans were each rewarded with between one and two million dollars each.
When asked why he did it, Thompson said the short answer is that “It was the right thing to do.”
“People came into my office crying.”
But upon reflection he realized he did it for himself: It was an egotistical thing. “To have the esteem of your workforce – what more could you want?”
The farm boy who grew up to be an Air Force pilot started the business 40 years ago with an investment of $3,500. He was able to succeed, he told National Public Radio’s All Things Considered, “Because of the employees, who made the difference between us and our competitors. We demanded that they be number one every day of their work life – and that’s asking a lot.”
Bob stayed on at the office to help the transition go smoothly. That same year, he and his wife, Ellen, founded the Thompson Foundation with $100 million from the sale of the Thompson-McCully Company.
The Foundation’s mission is to help low-income people rise out of poverty and become self-sufficient. In the beginning, the Foundation:
- Established 1,000 Detroit private school scholarships for Detroit inner city kids, 500 scholarships at Schoolcraft Junior College in Livonia, 100 Michigan Tech University undergraduate engineering scholarships, and 20 Michigan State University graduate scholarships;
- Granted funds to dozens of other programs like food banks, guidance centers, and job placement and training facilities.
Although the Foundation serves a seven-county region (Wayne, Oakland, Macomb, St. Clair, Livingston, Washtenaw, and Monroe), the vast majority of its funds are used to serve those who live in Detroit, Highland Park and Hamtramck. The Thompsons intend to distribute ALL of the Foundation’s funds in the next 10-15 years.