69-year-old CEO says he turned 19 employees into millionaires after selling the company in a $1 billion deal

In a remarkable turn of events, Bill Phelps, the 69-year-old CEO of Dave’s Hot Chicken and co-founder of Wetzel’s Pretzels, has transformed the lives of 19 of his employees into millionaires following the sale of a majority stake in his booming chicken chain to Roark Capital. The acquisition, valued at nearly $1 billion, not only illustrates the brand’s meteoric rise from a humble $900 food stand in a Los Angeles parking lot to a billion-dollar franchise but also showcases a powerful shift in how leaders can reward their teams.

Phelps made headlines not solely for the magnitude of the deal but for his commitment to his team. In a move that flies in the face of traditional investor pressures, he rewarded corporate staff and managers with bonuses equal to a full year’s salary. This strategic decision is a case study in modern leadership—prioritizing the well-being of employees over the immediate demands of investors.

“In an age where workers often feel undervalued, this initiative highlights how loyalty, vision, and generosity can lead to significant rewards for everyone involved.”

As investors increasingly emphasize returns, Phelps’s actions set a new standard for what it means to lead. He proves that a company’s value extends beyond financial metrics; it resides in the culture and respect built within its walls. The approach not only fosters loyalty among employees, it also positions the brand favorably in the eyes of potential investors, who are increasingly looking for responsible and ethical leadership.

RELATED: CEO Took a 94% Pay Cut So His Employees Could Earn $70K, and Now His Company Is Thriving

This move resonates well beyond the boardroom. With increasing discussions about employee value and equity, Phelps’s decision is a noteworthy blueprint for other CEOs. In an era where traditional norms often dictate self-serving practices, here lies an alternative: a model that advocates for shared success.

Investor Value Cues:
1. Market Strategy Insight: By prioritizing employee compensation, Phelps has cultivated a motivating company culture that may attract long-term investors looking for sustainable growth.
2. Risk Flag: While rewarding employees is noble, it’s critical for CEOs to balance these decisions with strategic investments that can sustain long-term growth to avoid depleting resources.
3. Tax Angle: New wealth among employees opens discussions around wealth management and potential tax implications for those receiving bonuses akin to salaries.
4. The Practical Value: Other CEOs can analyze Phelps’s strategy and consider how they might implement employee incentive programs without jeopardizing financial stability.
5. The Passion Element: Encouraging stories can enhance a brand’s narrative. Phelps’s leadership underscores the impact of investing in people, which could influence consumer loyalty and corporate reputation in a competitive market.

In conclusion, Bill Phelps’s choice to share the wealth following the acquisition of Dave’s Hot Chicken sets a precedent for how modern CEOs can operate with integrity while achieving financial success. It’s not just a headline; it’s a powerful message that leadership can—and should—mean uplifting the entire team.