Greatest boss ever? Gravity Payments CEO raises company minimum wage to $70,000

[Viligant_Warrior]

Seattle boss raises entire company's minimum wage to $70,000

After hearing about a study that claimed income-- to a certain level-- directly affects one's emotional well-being, the founder of a Seattle-based credit card processing company announced Monday that he will take a large salary cut so he can increase the pay for each employee to at least $70,000 a year.

The New York Times reported that Dan Price, the head of Gravity Payments, told his 120-person staff about the plan after talking to friends about the difficulties of making $40,000 a year.

He's cutting his own salary from $1 million back to $70,000, and anticipating that increased company profits will enable him to make good on the promise. About 30 employees, including the lowest-paid clerk, will get raises to $70,000. The other 90 already make that, or more.

And they'll probably still complain about the boss!

 

[notuptome]

Well at least he's not in the fast food business. Imagine a $4,000.00 meal deal?!

The fields are white unto harvest but the laborers are few.

For the cause of Christ
Roger

 

[GaryA]

Are they hiring?

 

[zeroturbulence]

This sounds nice on the surface, but then think about all the employees who had to work their way up the promotion ladder to get raises and make a higher salary. Now even the lowest paid will be making as much as or close to what they make without having to do anything.

There was a professor who once conducted an experiment in his class by announcing that he would give everyone an A for the class no matter how well or how poorly they did on their tests. What happened was the ones who were making high grades began slipping because they saw no point in studying anymore and the slackers continued to slack, so in the end you had a class full of happy slackers.

 

[Viligant_Warrior]

This sounds nice on the surface, but then think about all the employees who had to work their way up the promotion ladder to get raises and make a higher salary. Now even the lowest paid will be making as much as or close to what they make without having to do anything.

Those making $70,000 or more already weren't penalized. He didn't lower anyone's salary but his own.

The real issue, as I've found since I posted this, is that Gravity Payments has revenues of $2 million per year, and he has just raised his payroll to $9 million a year. That's going to be a problem. It's great the clerks, order processors, and secretaries are going to make $70,000 a year -- but when he's bankrupt in 18-24 months, they aren't gonna be makin' anything.