Spanx Gave ALL Employees $10,000 and 2 First-Class Plane Tickets

Thanks to their brilliant founder, Sara Blakely

On October 20, 2021 the private-equity company, Blackstone (which is different than BlackRock), purchased a majority stake in the innovative clothing company, Spanx.

Spanx, who famously reinvented women’s activewear, is worth $1.2 Billion after the deal. Perhaps the most exciting news came from an Instagram video posted by founder and CEO, Sara Blakely, after the deal was finalized.

As a treat for contributing to the company’s continued success, Sara decided to give all her employees two (2) first-class plane tickets to go anywhere in the world! Along with the tickets, everyone will receive $10,000 cash to enjoy themselves while abroad! No need to stress about depleting their own savings.

When I first came across this headline, I assumed that Spanx held some type of lottery where two people in the entire company won plane tickets and a bit of money. I was floored to learn that she had given this gift to everyone!

Where some bosses might cut corners in the name of “fiscal responsibility,” Sara recognizes the importance of respecting employees as people with personal lives of their own. Even if it seems “fiscally irresponsible” in the short-term, the long-term benefits of maintaining such a friendly company culture will pay massive dividends to both Spanx and Blackstone.

I’m not suggesting that executives should waste money on frivolous gifts in lieu of lasting pay-raises and better working conditions.

One-off gifts are usually performative by the corporation and unwanted by the employees, like a pizza party or branded t-shirt. I’ve seen lotteries for extra vacation days — something that keeps the costs as low as possible while keeping employees’ aspirations high. These gifts are nothing more than neoliberal appeasement in business management.

But in this case, Sara nailed it.

When you make beaucoup bucks from a private-equity firm, it’d be selfish to keep it all for yourself.

No matter where an idea comes from, nobody builds a company alone. No founder in their right mind would claim such an absurdity.

Sara knows this, ending her video caption:

“I really want every employee to celebrate this moment in their own way and create a memory that will last them a lifetime! Cheers to 21 years of magic and many more to come …. 🥂” — via Sara Blakely Instagram

As an executive, your employees aren’t your subordinates — they’re your teammates. They got you here today. They’re still clocking in to get where you want to go tomorrow. Of course they deserve to share in the rewards of all that hard work!

Sara’s gift isn’t performative. For a company of 750 people, a $10,000 bonus and two first-class tickets each must have depleted a significant chunk of the profits that Sara was set to make from this deal.

In a culture where paid time-off (PTO) is rare and traveling is expensive, this is a gift that every employee can undoubtedly enjoy. (Although it’s unclear what the compromise will be for people who are afraid to fly, like Sara herself).

What she’s done for her Spanx employees should be commonplace in corporate mega-deals.

It’s something we should teach as a “best practice” in business schools so our most highly educated leaders don’t continue to hide behind the dehumanizing logic of neoliberal economics.

Thank you, Sara and Spanx, for bringing us one of the best anti-neoliberal news stories of the year.

Bonus:

Another impressive aspect of this merger is Blackstone’s approach to integration. In their announcement, they highlight that the “transaction [is] led by [an] all-female Blackstone investment team.”

The paradigm-shifting founder of Spanx, Sara Blakely, originally set out to design hosiery that wouldn’t show panty lines through women’s clothes. She has a tremendous episode on NPR’s How I Built This with Guy Raz where she details the struggles of creating a startup (as a woman founder) in a monopolistic (male-dominated) market with just a few key players, like Neiman Marcus, Ralph Lauren, Abercrombie & Fitch, JCPenney and Nordstrom. If you’re interested in Sara’s full entrepreneurial journey, I highly recommend listening to her conversation with Guy, who is an excellent podcast host.

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