Dan Price took a 90% pay cut to improve his employees' well-being.
Last week Dan Price, CEO of credit card processing company Gravity Payments in Seattle, impressed his employees and all those who read about his new salary policy.
On opening new offices in Boise, Price announced on Twitter that all of the employees would be earning a minimum of $70,000 by 2024 — a policy Price had already set in motion in his Seattle offices in 2015. His reasoning came from a study he read that demonstrated a correlation between an employee’s improved well-being with an income level that hits $75,000 — something most people could appreciate.
So three years ago he cut his own wages of $1 million by 90%, and took $2 million from the firm’s profits to be able to increase his employees’ salaries so that they would eventually hit the $70,000 mark by 2018. Some members of staff found their wages doubled, as reported by Kake.com.