From $1 million to $70,000, CEO Slashes Own Salary to Double Employees’ Minimum Wage
With a salary downgrade from $1 million a year to $70,000, it could be the biggest pay cut in history but Dan Price wasn’t protesting it, in fact, he was the one who imposed the salary slash on himself!
But why would someone voluntarily cut down his salary by $930,000? Well, the answer is simple enough: so his employees could have a better salary increase!
For Dan Price is no ordinary worker. He is the founder and CEO of Gravity Payments in Seattle. Since the company started in 2004, he has made a lot of money – most of which was used to expand the company. He also saved a portion of this money; thus, he has a tidy sum kept for emergency purposes and so he could a comfortable life.
This year, he decided he had amassed an ample fortune to live a good life and must think of his employees’ welfare. He realized there was a huge gap between the salaries of top company officers such as himself and the wages of their lowly employees.
Considering these lowly employees are the life blood of the company, Price decided it was high time the huge gap was removed; he will have the same salary as his workers and theirs will also be increased to $70,000 a year! Part of the funds for the workers’ pay increase will come from Price’s $930,000 pay cut.
If the change hugely affected Price, is also affected the workers greatly but in a really positive way. The company’s average annual salary is $48,000. By increasing the minimum wage to $70,000 a year for everyone, around 30 of his workers will get double their old salaries!
But what was even more touching in all these hoopla is that aside from getting a huge increase in their salaries, the workers would be getting the same salary as their boss! Isn’t that awesome? He admitted he is projecting an increase in the future but only when the company’s profit will hit their $2.2 million target.
How great a world it would be if all capitalists and company big bosses were like Dan Price!