BOISE, Idaho – A Maverick CEO who reduced his own salary four years ago to raise his employees' salary is doing so again.
Dan Price, chief of Seattle-based Gravity Payments, said Tuesday that all employees in the company's new Boise, Idaho, office will earn a minimum salary of $ 70,000 by 2024.
“This morning we cut the tape on it the new @GravityPymts Boise office AND announced that all of our employees here will start earning our $ 70,000,000 salary, ”Price announces on Twitter. "I am so grateful to work with this wonderful team and to be able to compensate them for the value they give to our community."
The Boise office was previously an independent company called ChargeItPro, and Gravity, a credit card processing company , bought it as a subsidiary three years ago.
In 2015, Price decided to increase the salary of employees after reading a study on happiness. It said that additional income can make a significant difference in a person's emotional well-being up to the time they earn $ 75,000 a year.
He then made the decision to raise the wages of all his 120 employees in Seattle, raising the minimum wage to $ 70,000 – and reducing his $ 1 million salary by 90% to make it happen.
The relocation doubled the wages of about 30 of his workers and provided another 40 significant increases.
Price says the higher the salary has changed the lives of the employees. They have been able to grow their families, more than 10% of employees have purchased a home for the first time, and individual 401 (k) contributions have more than doubled.
Since then, Price has shared his story across the country and inspired other business leaders to do the same.