Andersen Corp. will pay out $31.6 million in 2021 to eligible employees as part of the company's annual profit sharing program. The company also announced its 2022 profit sharing program will increase to $4,000 per eligible employee and will require employees to be fully vaccinated to qualify.
"In times like these, our annual tradition of profit sharing is a particularly special way we recognize and celebrate the work of our employees," says Jay Lund, Andersen chairman and CEO.
The total 2021 payout of $31.6 million will result in an annual payout of $3,200 per eligible employee, which is $400 above the target for the year.
Andersen's century-old tradition of profit sharing dates back to 1914 when founder Hans J. Andersen personally delivered the first checks. Over the years, the structure of the program has evolved in response to the changing times. With strong customer demand expected to continue into 2022, and the ongoing threat of the COVID-19 pandemic, the company announced changes to its 2022 profit sharing that aim to further the company's commitments to protecting the health of its employees and customers, contributing to the global effort to combat the virus and attracting the talent necessary to meet the surge in demand.
"At Andersen, we made the decision earlier this year not to institute a vaccine mandate for existing employees given all we have been through together over the past 21 months," says Lund. "Going forward, we believe it continues to be our responsibility to take appropriate measures to help reduce the impact of this pandemic on our people and our communities. We've chosen to do this by incentivizing current and future employees through a vaccination requirement as part of our 2022 profit sharing program."
In 2022, the company will commit $4,000 in profit sharing per eligible employee. This will be the largest profit sharing payout the company has made since before the Great Recession. It will also be a fixed amount paid in quarterly installments of $1,000, rather than a single year-end payout based on the company's financial performance. To participate, employees will be required to be fully vaccinated against COVID-19 prior to each quarterly payment, subject to limited exceptions.
As of Dec. 4, 2021, Andersen requires all new hires to be fully vaccinated against COVID-19 prior to their first day of work at Andersen, again subject to limited exceptions.