The CEO of Gravity Payments, a Seattle-based company that processes credit-card payments, told his employees this week that he was taking a pay cut so they would earn a base salary of $70,000, to be phased in over three years.
Dan Price’s announcement surprised everyone at a company meeting and said his pay cut is worth it to make the company’s more than 100 employees happy and to build loyalty. The pay change had employees delighted with the new possibilities.
One woman said the funds would double her current salary at the company and allow her to purchase a home for her family. Another man commented that he and his wife would now move forward with starting a family earlier than they had planned.
Earlier this month, Seattle’s minimum wage law went into effect, which will eventually raise base hourly pay to $15. It’s phased in more quickly for big companies than small ones: Large businesses and national chains had to raise their minimum wage to at least $11 an hour when the law took effect April 1, while smaller businesses now must pay at least $10.
The young CEO Price said he hoped his initiative would “spark a conversation” with people .
Sparking a conversation will be inevitable in a world where the pay scales of CEOs and employees is traditionally night and day.
What do you think about the move? Will it bolster productivity and enthusiasm among employees for the long haul? Comments welcome!
SOURCE: Watch News, NY Times, YouTube
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