What was Don Tyson's Net Worth?
Don Tyson was an American businessman who had a net worth of $1 billion at the time of his death in 2011. Don Tyson was the American President and CEO of Tyson Foods from 1967 to 1991. He died of cancer on January 6, 2011 at the age of 80.
Biography
Donald J. Tyson was born in Olathe, Kansas on April 21, 1930. Don began learning about the poultry business when he was fourteen while working as a chicken catcher at Tyson's Feed and Hatchery. He studied at Kemper Military School in Boonville, Missouri as well as the University of Arkansas, but ultimately dropped out of school to help at his father, John W. Tyson's, Arkansas poultry company. In 1966 Don became the company's first plant manager. In 1966 he was promoted to company President. A year later he became CEO after his parents died in a car crash. He remained CEO until 1991. He served as company Chairman and Senior Chairman until his full retirement in 2001.
Success
At the time he became CEO in 1967, Tyson Foods' annual revenue was $51 million. At the time of his retirement in 2001, the company was generating roughly $10 billion in revenue per year. In recent years the company generated north of $50 billion.
Under Don's leadership, Tyson Foods helped develop and popularize McDonald's Chicken McNugget and the KFC Rotisserie Gold. The company also expanded to nearly every single grocery store in the United States with its ubiquitous packaged frozen and fresh chicken.
(Photo by Erik Freeland/Corbis via Getty Images)
Wealth & Estate Tax Timing
In the early 1980s, Don first popped up on rankings of the richest people in America with a net worth of $275 million. His net worth peaked in 1997 at $1.2 billion. That made him one of the richest people in Arkansas. He would have been the richest person in Arkansas, if it weren't for the extremely wealthy Walmart heirs. He was worth $1 billion at the time of his death in 2011.
In 2001 President George W. Bush signed into law a temporary federal estate tax reprieve that adjusted the rate from 35% to 0%. That reprieve expired on December 31, 2010.
Don Tyson died on January 6, 2011 at the age of 80. Had he died just six days earlier, his federal estate tax rate would have been 0%. Unfortunately his estate was instead subject to 35% tax, which would presumably have been a roughly $350 million tax bill for his heirs.
As a comparison, NY Yankees owner George Steinbrenner died on July 13, 2010. Therefore his heirs did not need to pay a dime of federal estate tax on George's $1.4 billion fortune.
Tyson Foods Controversies
The rise of Tyson Foods was not without its controversies and critics. Here is a breakdown of some of the biggest complaints and controversies associated with Tyson Foods during Don Tyson's reign and through today:
Animal welfare:
- Tyson Foods has faced numerous accusations of inhumane treatment of animals in its supply chain, including overcrowding, antibiotic overuse, and improper slaughter practices.
- Undercover investigations have exposed instances of animal cruelty on some farms affiliated with the company, sparking public outrage and calls for reform.
- Misleading labels and marketing:
- Tyson Foods has been criticized for using terms like "free-range" or "natural" on product labels when the actual conditions may not meet consumer expectations or legal definitions.
- Critics argue these practices deceive consumers and undermine transparency in the food industry.
Worker safety and exploitation:
- Tyson meatpacking plants have been associated with high rates of injuries and worker health risks due to demanding and dangerous working conditions.
- Concerns have been raised about unfair labor practices, including low wages, limited bargaining power, and immigration issues among some workers.
Environmental impact:
- Tyson Foods' large-scale operations have been linked to water pollution, air emissions, and waste generation, negatively impacting surrounding communities and ecosystems.
- Critics also point to the environmental consequences of intensive animal agriculture, such as deforestation and greenhouse gas emissions.
Monopoly and market power:
- Tyson Foods dominates the US meat industry, controlling a significant portion of the market for various meats. This raises concerns about price manipulation, limited consumer choice, and unfair practices against smaller producers.
Grandson's Arrest
Don Tyson was survived by a son and three daughters. His son, John H. Tyson, has served as Chairman since 1998 and was CEO from 2000 to 2006. One of John's children, John R. Tyson, became somewhat infamous in November 2022 after an embarrassing arrest in Fayetteville, Arkansas. At the time, John R. Tyson, was the CFO of Tyson Foods. He was arrested in the early morning hours after he was found passed out asleep in a stranger's bed. He reportedly entered the stranger's home, located a bedroom and went to sleep. When the resident returned to her home, she called the police. Police body camera footage would later show a rather amusing scene, with the then-32-year-old CFO and company heir, attempting to go back to sleep even as several police officers attempt to rouse him from the bed using physical force.
Mike Espy Allegations
Don was famously close to one-time Arkansas governor Bill Clinton, who became President in 1992. Clinton's first Secretary of Agriculture was a man named Mike Espy. Espy resigned in 1994 after being accused of accepting roughly $12,000 worth of gifts and other benefits such as plane trips and football tickets, from Don and his son John H. Tyson. It was later alleged that the Tysons were attempting to persuade the secretary from not adopting stricter safety and inspection regulations that would have impacted Tyson Foods. Don and John were named as un-indicted co-conspirators and were forced to testify before a grand jury in exchange for immunity. In 1998 Espy was acquitted at trial, but Tyson Foods ultimately agreed to pay $6 million in fines and costs related to the charges.
Real Estate & SEC Charges
At the time of his death, Don Tyson lived in a lavish mansion in Springdale, Arkansas. The 33-acre estate features two private lakes and rolling green lawns. This property still belongs to the Tyson family. Tyson Foods owned five mansions around the world, including an estate in the English countryside and a mansion in Cabo San Lucas, Mexico. Don, his family and friends frequently visited and enjoyed these mansions. In the early 2000s, Don and Tyson Foods faced an SEC civil action over the personal use of company assets such as these estates. The SEC alleged the Don was the beneficiary of $1.5 million worth of personal benefits related to the homes, including private jet travel to and from, maintenance, chefs, chauffeurs, housekeeping and more. Company records reportedly showed that periodically Don's friends would use the properties without Don, hosting their own friends, and using company assets for their own personal enjoyment. Don's friends and family allegedly frequently used company private jets with and without him. Tyson Foods ultimately agreed to pay $1.7 million to settle these charges.
Here is a breakdown of costs the SEC alleged were incurred by Don and his friends for non-company use:
- $464,000 in personal use by him and his family and friends at the English and Mexican estates
- $426,000 in personal use of the corporate aircraft
- $203,000 in housekeeping at five different company owned mansions
- $84,000 in lawn maintenance
- $46,000 to maintain nine cars used by Don, his family, and friends
- $36,000 in telephone services
- $15,000 in Christmas gift cards provided to friends and family
ncG1vNJzZmivp6x7pLHLnpmroaSuu6bA1qipraBemLyue9GimqGdo6l6o8HSoqWeq6Oisq970aKaoZ2jqXqjtculoKimkZ6%2Fpr%2BOnaanZaSuwLC6jKecrWWnpL%2B1tI4%3D