CEO Who Took A 90% Pay Cut To Raise His Staff’s Minimum Salary To $70,000 Shares How It Changed Him And His Team
Dan Price is the Co-Founder and CEO of Gravity Payments, a credit card processing and financial services company. In 2015, the company made headlines all over the world when Price announced that his employees would receive a minimum salary of $70,000.
To finance this move, Dan cut his own $1.1M pay by 90%. At the time, this decision received a lot of criticism but 6 years later, the company is thriving and Price said it has made him happier and a better boss.
Meet Dan Price, the CEO of Gravity Payments, who just celebrated 6 years of having cut his own pay by a million dollars to increase his employees’ wages
Image credits: danpriceseattle
When Price made the announcement to his 120-member staff, inviting NBC News and The New York Times to cover it, he caused a huge stir. A movement even. There were 500 million interactions on social media and NBC’s video has become the most shared in network history. Also, Gravity Payments was flooded with stories from thankful workers elsewhere who suddenly got raises from converted bosses.
But most importantly, Price had poured so much gas into the debate on how much should workers be paid, it continues to rage across the corporate landscape all over the world.
Recently, he turned to Twitter to explain what inspired him to make this bold move
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
So far, Price stands out from the crowd like a white crow. A report by the Economic Policy Institute states that the average CEO pay is 271 times the nearly $58,000 annual average pay of the typical American worker.
Even though some argue that CEO pay is based on experience and high demands that come with the role, the study finds that’s actually not the case.
“CEOs are getting more because of their power to set pay, not because they are more productive or have special talent or have more education,” the report says. “Exorbitant CEO pay means that the fruits of economic growth are not going to ordinary workers, since the higher CEO pay does not reflect correspondingly higher output.”
For comparison, in 1978, CEO earnings were roughly 30 times the typical worker’s salary.
In the UK, the bosses of FTSE 100 companies now earn 117 times the salary of their average worker.
Gravity Payments is thriving
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
At first, Price hoped for widespread, structural change. But it didn’t happen.
“Boy, was I wrong,” he says. “I’ve really failed in that regard. And it’s changed my perspective on things because I really believed that through the actions that I did and that other people could do, that we could turn the tide on runaway income inequality.”
But maybe that’s not the end of it?
As a thank you, Dan’s employees bought him a new Tesla
Image credits: danpriceseattle
Image credits: danpriceseattle
The CEO constantly revises his company’s salary policy
Image credits: danpriceseattle
And people are applauding him for it
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He is the antithesis of Jeff Bezos, he even has the reversed hairdo!
He's like the Magna Carta of CEOs. Bezos is wet cardboard.
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It's amazing what happens when you treat your staff like human beings. There were a few managers in my company that expected staff to give 100% of their time to their jobs. All day every day. They are not here anymore. The new owners have put an emphasis on staff well being rather than expecting us to work 24/7.
This is what Bezos could do for SO MANY and yet he goes to space to make up for his tiny d**k. Poor Lauren Sanchez....
I'm sure she's doing fine with his microdick and his billions.
Load More Replies...
The person who commented that CEOs make 100x what the average worker does is WAY behind the times. That number is actually in the 1000s now. This has gotten progressively worse and shows no sign of stopping. I forget the exact figures, but I think that it increased from about 4x to 20x from 1910 to 1970, and has gone from 20x to like 2000x since.
That first comment, about their boss saying "The more money you'll make the more you'll spend" - did I miss the memo saying why that's a bad thing? Are we not supposed to encourage the money to go around? I'm ignoring the follow up comment about their husband because that's just blatant BS, but I cannot follow the logic of that first part at all.
My company feels employees are always replaceable with lower paid ones
So, he was a millionaire for years. Where did he think that money was coming from? All those years, did he just think that he was working 50 times harder than his employees?
It took direct human interaction for him to twig where he was going wrong, to see the pain of reality, but at least he did.
Load More Replies...
Nothing will guarantee success like investing in your employees. Other companies in this vein have made employees shareholders, and they decide the direction of the company. Those companies also thrive. Capitalism in its current form can't last. These are the new directions we need to follow.
That person who wrote that Western Europe has High Minimum wage,free schooling and 36 hour workweek ,they just pay high taxes for the system to work .IS IT TRUE??
basically yes, of course the exact numbers change from country to country
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@concortcoco we in CZ work 6 hours it includes free lunch+ paid from 5 star restaurant :) and we are teachers btw:)
I just quit my job at Pearle Vision because it's exactly the opposite of what this company is. A top down, ignore the peasants at the bottom, giant corporation where we work our asses off for scraps while padding the pockets of billionaires. I'm starting my own business and if I happen to have the success that this one has, I will definitely try my hardest to be like this man.
Years ago I accepted employment with a branch of a larger, out-of-state company. My salary was adequate but come raise time, everyone (only about 5 people that first year) got a raise but me. I went to the boss and asked if there was something wrong with my work. Everyone got a raise but me. He said "do you expect to get a raise every time everybody else does?" I sure do. And I got it. Which started an interesting trend. Some years later when I that job closed, I sent a resume to a new company moving to my city. The PM did a telephone interview and asked what salary I was looking for. When I told him, he said "I'm the PM and I don't make that much."
Oh the rich saviours! How wonderful. What gullible minded crap is this? He even had to tell us all how much of a saviour he is. so he took 94% less wage for himself how much was the self serving k**b earning? Hate this trickle don wealth crap.
Is this in America? Because in the U.K. £30,000 is a lot. More than what teachers get paid, especially when the U.K. average wage is £7.40 per hour
Unions folks. Look back 100-125 years in the USA and see why unions were invented to begin with. Disclaimer: I know unions have been around a lot longer than that. Just want folks to know how bad things were before strong unions and how bad things are once again without strong unions.
Look to the UK to see how unions f**k everything up.
Load More Replies... 
Share the wealth, the only reason not to is greed, just so the few can boast about how many billions they have in the bank.
If you go purely by glassdoor reviews, that doesn't seem to be the case. Quoting one...."...the attrition rate is ridiculous. There is someone leaving or getting fired (at least) once a week." Some have described the working environment as manipulative, toxic, chaotic and heavy work load. One said "The culture is such that you should live and breathe your job."
Load More Replies...
120 staff (we'll call it 100 for easy math), 90% off his salary (call it 1M for easy math), that's an extra $10k per employee, but she ended up with a 40k pay rise?? Plus, the whole company is run off making money from those using credit cards, which is going to hurt different poor people. Spin the story any way you like it, but money has to come from somewhere, he could reduce charges for his company which will help millions rather than 100
This is a mind F people. He is paying himself low wages but he owns all the Stock!!!!!!!!!!!!!!!!!!
He's not beholden to profit-driven shareholders then. His employees are paid very well and treated well. He does own the company, so having dividends from shares isn't unreasonable.
Load More Replies... He is the antithesis of Jeff Bezos, he even has the reversed hairdo!
He's like the Magna Carta of CEOs. Bezos is wet cardboard.
Load More Replies... It's amazing what happens when you treat your staff like human beings. There were a few managers in my company that expected staff to give 100% of their time to their jobs. All day every day. They are not here anymore. The new owners have put an emphasis on staff well being rather than expecting us to work 24/7.
This is what Bezos could do for SO MANY and yet he goes to space to make up for his tiny d**k. Poor Lauren Sanchez....
I'm sure she's doing fine with his microdick and his billions.
Load More Replies... The person who commented that CEOs make 100x what the average worker does is WAY behind the times. That number is actually in the 1000s now. This has gotten progressively worse and shows no sign of stopping. I forget the exact figures, but I think that it increased from about 4x to 20x from 1910 to 1970, and has gone from 20x to like 2000x since.
That first comment, about their boss saying "The more money you'll make the more you'll spend" - did I miss the memo saying why that's a bad thing? Are we not supposed to encourage the money to go around? I'm ignoring the follow up comment about their husband because that's just blatant BS, but I cannot follow the logic of that first part at all.
My company feels employees are always replaceable with lower paid ones
So, he was a millionaire for years. Where did he think that money was coming from? All those years, did he just think that he was working 50 times harder than his employees?
It took direct human interaction for him to twig where he was going wrong, to see the pain of reality, but at least he did.
Load More Replies... Nothing will guarantee success like investing in your employees. Other companies in this vein have made employees shareholders, and they decide the direction of the company. Those companies also thrive. Capitalism in its current form can't last. These are the new directions we need to follow.
That person who wrote that Western Europe has High Minimum wage,free schooling and 36 hour workweek ,they just pay high taxes for the system to work .IS IT TRUE??
basically yes, of course the exact numbers change from country to country
Load More Replies... @concortcoco we in CZ work 6 hours it includes free lunch+ paid from 5 star restaurant :) and we are teachers btw:)
I just quit my job at Pearle Vision because it's exactly the opposite of what this company is. A top down, ignore the peasants at the bottom, giant corporation where we work our asses off for scraps while padding the pockets of billionaires. I'm starting my own business and if I happen to have the success that this one has, I will definitely try my hardest to be like this man.
Years ago I accepted employment with a branch of a larger, out-of-state company. My salary was adequate but come raise time, everyone (only about 5 people that first year) got a raise but me. I went to the boss and asked if there was something wrong with my work. Everyone got a raise but me. He said "do you expect to get a raise every time everybody else does?" I sure do. And I got it. Which started an interesting trend. Some years later when I that job closed, I sent a resume to a new company moving to my city. The PM did a telephone interview and asked what salary I was looking for. When I told him, he said "I'm the PM and I don't make that much."
Oh the rich saviours! How wonderful. What gullible minded crap is this? He even had to tell us all how much of a saviour he is. so he took 94% less wage for himself how much was the self serving k**b earning? Hate this trickle don wealth crap.
Is this in America? Because in the U.K. £30,000 is a lot. More than what teachers get paid, especially when the U.K. average wage is £7.40 per hour
Unions folks. Look back 100-125 years in the USA and see why unions were invented to begin with. Disclaimer: I know unions have been around a lot longer than that. Just want folks to know how bad things were before strong unions and how bad things are once again without strong unions.
Look to the UK to see how unions f**k everything up.
Load More Replies... Share the wealth, the only reason not to is greed, just so the few can boast about how many billions they have in the bank.
If you go purely by glassdoor reviews, that doesn't seem to be the case. Quoting one...."...the attrition rate is ridiculous. There is someone leaving or getting fired (at least) once a week." Some have described the working environment as manipulative, toxic, chaotic and heavy work load. One said "The culture is such that you should live and breathe your job."
Load More Replies... 120 staff (we'll call it 100 for easy math), 90% off his salary (call it 1M for easy math), that's an extra $10k per employee, but she ended up with a 40k pay rise?? Plus, the whole company is run off making money from those using credit cards, which is going to hurt different poor people. Spin the story any way you like it, but money has to come from somewhere, he could reduce charges for his company which will help millions rather than 100
This is a mind F people. He is paying himself low wages but he owns all the Stock!!!!!!!!!!!!!!!!!!
He's not beholden to profit-driven shareholders then. His employees are paid very well and treated well. He does own the company, so having dividends from shares isn't unreasonable.
Load More Replies...
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