A Wealth of Interest : Huge Bonuses at Firm Spur Bounty of Calls, Resumes

Resumes flowed from fax machines and telephones rang incessantly Monday and Tuesday at Kingston Technology Corp. as news spread about the company’s unprecedented $100-million bonus package for its employees.

“We’ve been swamped all day since 7 in the morning,� Catalina Perry, one of three receptionists at Kingston, said Monday. “We’ve received hundreds of calls. It’s overwhelming.�

For nine years, the Fountain Valley company has quietly risen to the top of the computer memory industry while treating its workers like family. But this week the company found that its latest example of generosity had struck a chord that resonated across the country with job seekers and the media.

The event that prompted the avalanche of interest was an announcement made by Kingston co-founders David Sun and John Tu at the company’s holiday party Saturday. Sun and Tu had sold 80% of Kingston to Softbank Corp. of Japan for $1.5 billion earlier this year, and last weekend told workers that they would share in the bounty to the tune of $100 million.

About $60 million was set aside for future bonuses to employees, but $40 million is to be distributed immediately. With 523 employees, the average payments are expected to approach $75,000, although some workers could get $300,000 or more.

By midmorning Monday, the company’s public relations department had fielded hundreds of calls from news organizations requesting interviews. “I was even on Canadian radio . . . live,� Sun said.

“They all want to know why the other guy doesn’t do this,� Sun said. “I say: ‘I don’t know. I just do what I think is right.’

“People say, ‘You’re setting a trend,’ � he continued. “I said, ‘Look, we’ve been doing this for nine years. I’m not setting a trend, I’m not here to preach. This is what I do. Tomorrow, life goes back to normal, and we won’t change.’ �

Although the latest bonuses are by far the largest in the company’s history, Kingston has traditionally set aside 5% of its profit every quarter and divided the money among employees. Kingston workers, whether they are assemblers, shippers or salespeople, also get catered lunches every Friday as well as promises that they will have jobs for as long as Kingston exists.

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Sun and Tu both say their employees are the reason Kingston is the largest computer memory company in the industry, with sales approaching $2 billion this year.

The company has been deluged by thousands of people asking for a chance to become a Kingston employee.

“I’m a straight-A student, No. 4 in my graduating high school class,� faxed one Garden Grove teenager asking for a summer job. “I read about Kingston in The Times and what really came across was your love and care for people, and the way you are so honest and full of integrity. I would be honored to be a part of your company.�

Many other missives simply expressed support for the company’s policies.

“According to Indian mythology, nobody has seen God,� one of the company’s vendors wrote Sun. “But you and John have made his existence felt by many of your staff and their family members.�

Sun and Tu, who will continue to manage the company, say they are beginning to understand the significance of their bonus announcement, but added that they are anxious for the attention to pass.

“This is really embarrassing,� Sun said, adding that he planned to “send an e-mail to employees that everything is over and let’s get back to business.�

Incidentally, the company does have a few openings.