*In an unprecedented corporate move, one CEO who apparently wants his workforce to be ‘happy’ has announced he will slash his own salary and raise the salary of each of his 120 employees over the next three years – with the minimum salary being set to $70,000; this increase will affect workers that include clerks, customer service representatives and people working in the sales category.
Hey corporate world are you listening?
It’s a known (and embarrassing) fact that a country this powerful and wealthy has some of the lowest paid employees and the fight to raise the minimum wage to a living wage has reached a crescendo over the past few years.
“The United States has one of the world’s largest pay gaps, with chief executives earning nearly 300 times what the average worker makes,” reports the New York Times.
Dan Price is the founder and CEO of Gravity Payments – a credit card payment processing firm that he started at age 19 in his college dorm at Seattle Pacific University. His company processed over $6.5 billion in transactions; spanning over 12,000 different companies last year alone.
His annual salary is one million dollars. But that’s about to change.
“Is anyone else freaking out right now? I’m kind of freaking out,” said Price to his staff members, when he made the announcement.
Price said that he got the idea to do this after reading an article on happiness that stated employees earning less than $70,000 a year will see an increase in happiness if extra money is offered.
After he cuts his own salary down to $70,000, the handsome CEO states he will use 75-80% of the company’s profit made to make this happen smoothly.
Gravity is expected to make around $2.2 million this year in profits.
The company’s average annual salary currently sits at $48,000.
According to the New York Times, Price’s move is completely against the “norm” for CEOs.
A big hooray for Dan Price. I nominate him for CEO of the Decade!
Let’s hope his thoughtfulness and generosity catches on!
One question, Mr. Price: Do you have any openings?