CEO Reduces Salary to Increase Employee Salary to $ 70,000
Just four years ago, the CEO of credit card processing company Gravity Payments breathed his salary to increase the salaries of employees.
This week, Dan Price announced he is doing it again.
Employees at the company's new Boise, Idaho office earning less than $ 70,000 a year will be added to a plan to increase wages to $ 70,000 by 2024, according to the company's statement released this week.
The move marks the efforts of the Seattle-based company to create "an insanely accessible company that loses the little guy and crazy in pursuit of the American dream."
While some considered the CEO's move "an unreasonable sacrifice," Price was quick to explain why he decided to cut his own seven-figure salary to pay for the initial increases.
"There is some number where your money that does not make your life much better when you hit it. Said.
" It was worth it, "Price tweeted, adding," I am proof of that . Any business that earns more than a million, any CEO who earns over a million should do so. It's about time. "
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Gravity bought the Idaho office, which was formally an independent company called ChargeItPro, as a subsidiary in 201[ads1]7.
Prior to Gravity's acquisition three years ago, more than half of ChargeItPro employees earned less than $ 30,000 a year, according to the company, which added that it raised the minimum wage there to $ 40,000 late in 2017.
Since the announcement, Gravity Payments saw an increase in employment from about 120 to almost 200 employees who have experienced personal growth as a result of the increased salary.
The number of children whose employees had increased from zero to one per year to six to seven per year, while more than 10 percent of workers were buying a house for the first time, according to the company. More than 70 percent of employees flooded with debt have been able to pay some of that, and personal individual contributions from 401 (k) have also more than doubled, the company added.
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The announcement follows a related move from banks that promised to raise the minimum wage, albeit by a smaller margin.
Citigroup, the last major bank to raise its minimum wage after Wells Fargo and JPMorgan Chase, raised its minimum wage to $ 15 per hour after being grilled by US lawmakers on the pay gap between high-level and branch workers.
The salary increase was implemented on June 1, after the head of the US's third largest bank faced setbacks to earn $ 24.2 million last year, which was 486 times the median employee salary.
