This is Dan Price, CEO of Gravity Payments, a Seattle based company that is currently the largest payment processing company in Washington.
When he read an article on how income affects happiness, he decided to do something completely unheard of for his employees
Growing income inequality had been on his mind for months, and he knew he had to do something about it. He cares about his company, and furthermore – he cares about his employees.
“There’s greater inequality today than there’s been since the Great Recession,” Price told The Huffington Post. “I’d been thinking about this stuff and just thought, ‘It’s time. I can’t go another day without doing something about this.'”
And so three weeks ago, after hearing that some of his employees were barely getting by, Dan took a $930,000 pay cut in order to raise the minimum salary for the employees at company up to $70k.
They look really happy about it
This salary raise will affect 70 workers, some of whom are now seeing their salaries double. Before the announcement the starting salary for an employee at Gravity Payments was $48,000 a year.
This change is mostly coming out of Prices’ pocket. His salary, which was about $1 million, is now also going to be $70,000 a year.
“There will be sacrifices,” he told the Huffington Post, “but once the company’s profit is back to the $2.2 million level, my pay will go back. So that’s good motivation.”
The average CEO makes 300 times what the average worker makes….
Higher paid and happier employees will be more motivated and work harder.
“This is a capitalist solution to a social problem. I think it pays for itself, I really do,” he said. “The market rate for me as a CEO compared to a regular person is ridiculous, it’s absurd,” Price told the Times.