Off Topic Madman or good chap?

Gravity CEO brings million-dollar salary back to Earth to fund $70k minimum wage for staff

A CEO in Washington wants his employees to be happy. And he’s putting his money where his mouth is, slashing his pay by $930,000 so he can give his workers a new minimum wage of $70,000 a year ‒ well above Seattle’s $15 an hour requirement.

Dan Price, the 30-year-old CEO of Gravity Payments in Seattle, made the announcement to the 120-strong staff on Monday.

“Is anyone else freaking out right now?” Price asked after the clapping and whooping died down into a few moments of stunned silence, according to the New York Times. “I’m kind of freaking out.”

"I think this is just what everyone deserves," he added.

Most of the money will come from Price’s $930,000 pay cut ‒ he’ll now earn Gravity’s $70,000 minimum wage ‒ but the rest will come from this year’s expected $2.2 million company profits. He will keep his income low until the profits are back up to their current level, he told the Huffington Post.

“There will be sacrifices,” said Price. “But once the company’s profit is back to the $2.2 million level, my pay will go back. So that’s good motivation.”

One employee, Alyssa O'Neal, told KING that she will more than double her current salary.

"To hear those numbers is just, 'Wow’," she said, adding that she already has plans for what to do with the extra income. "House, absolutely. I have this goal of being a 21-year-old homeowner and I'm going to reach that now and I'm stoked."

http://rt.com/usa/250013-ceo-pay-cut-minimum-wage/


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Fair balls to the mad ****, not likely to catch on tho is it.

 

In trying to do the right thing it might blow up in his face, as all of his team who were on pay plans with performance payments might now get into the comfort zone and their output will probably drop.

Laudable in terms of principle but maybe naive in terms of business acumen. Time will tell.

He'll certainly have bought some loyalty!

 

You're certainly a cynic mate


I'm of the opinion you'd only even consider that if you had a pretty good work force in the first place tbh. I know myself, I get a 70k increase, I'm gonna work for it because I'd want to keep that increase.

What I did like is that some of them had their salaries doubled, whatever happens, he took nearly a million quid a year out of his pocket and literally gave it to the others.

I reckon this is what a leader actually looks like

 

It's was a philanthropist looks like mate and fair play to the fella for the thought process.

I wasn't being cynical just realistic, I've seen what removing PRP and replacing it with much higher salaries can do to a workforce, and it's interesting tbf. Some improve productivity, some remain the same, but the majority dropped off in the case I was involved in.

 

I was taking the piss tobes, Cynic, realist, same thing I'm pretty much the same mate.

 

Unless the $70k is a basic starting wage and he's still offering said incentives on top.

 

70k is basic salary so that's probably possible.

 

I agree with the last part of that piece and the comment from the CEO of Porch, that's the way it should always work imo.

 

Lads he is not doing the right thing he is creating a big advertisement for his business and he is saying hey we pay freaking well so come work for us so he will get best graduates

It's Seattle as in microsoft area

I bet only a few relatively got the pay hike and half of those would be up there in a few years anyway

Plus the guy himself is going to be giving himself massive bonuses

Hell he will prob sell it in 2 years for millions upon millions!

It's obviously a start up in some internet business if he is 30 and ceo

He prob is paying a few call centre workers a lot for their job but does it say much in story

 

He could have spend the money and advertising anyways, this exposure will die down in no time flat, tomorrow it will be forgotten, it is next to worthless as advertsing as it needs ot be a sustained effort, giving up 930k and taking just 70k for such a short lived stunt, nah, you're way too cynical. He's doing this till profits rise and then his pay goes back up, it's a viable model for the company if profits aren;t great, unlike banks who took the money and made you give it back

His cut in his salary doesn't cover the raise for staff, the rest had to come from the company funds. So if they have to cut into the company funds, do the maths, his 880k cut is not covering the salary raises. That means the majority are getting raises MITO.

Seeing as the company is not doing well, he's cut off the top, his salary and boosted the actual people that provide the producivity, attacking the low profits issue on two fronts and getting kudos for it to boot.

I'd be pretty stoked myself if my boss just doubled my salary out of his own pay I'd work twice as hard for sure.

 

Actually no it won't cos in these circles he's just got his face out there now and you cannot buy this kind of publicity for him personally

Of course we would love this pay we all would but you only need a look at his mush to know this is a celeb ceo

 

I guess we disagree, people's attention spans are like farts in a breeze, sure I've already forgotten his name

 

I have for sure but we don't count. This guys company prob picked up 2/3 new clients already and will be in whatever mags for months

It's all about the attention IMO

You might be right but it'd be funny if you are on the business guys side and I'm the conspiracy theorist

 

Pure speculation, doesn't back your argument


I think you are bang on, except at least my theories brush shoulders with reality, even if only in passing

 

Between the tax reduction and the increase in stock value and bonuses it probably costs him nothing and the advertising is a free bonus

Steve Jobs was one of the richest people in the world and only needed to claim a 1 dollar salary

 

I don't think his company can even be compared to steve jobs never mind Apple

 

That's why his salary is $70,000 not $1 though

 

I didn't click on the link in the OP so I don't know if this is there but...

There is a video going around Facebook of this guy making the announcement to his staff. He clearly says everyone in the room will definitely get $70k salary but he also says it will be implemented over the next three years rather than immediately. Also raises the question of, was everyone that works there in the room?