HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Topics » Media » Good News (Group) » update on the boss who sl...

Wed Mar 4, 2020, 01:37 AM

update on the boss who slashed his salary to pay all employees a minimum of $70K

https://www.democraticunderground.com/100213042537



In 2015, the boss of a card payments company in Seattle introduced a $70,000 minimum salary for all of his 120 staff - and personally took a pay cut of $1m. Five years later he's still on the minimum salary, and says the gamble has paid off.

After crunching the numbers, he arrived at the figure of $70,000. He realised that he would not only have to slash his salary, but also mortgage his two houses and give up his stocks and savings. He gathered his staff together and gave them the news.



------------------

Since then, Gravity has transformed.

The headcount has doubled and the value of payments that the company processes has gone from $3.8bn a year to $10.2bn.

But there are other metrics that Price is more proud of.

"Before the $70,000 minimum wage, we were having between zero and two babies born per year amongst the team," he says.

"And since the announcement - and it's been only about four-and-a-half years - we've had more than 40 babies."

More than 10% of the company have been able to buy their own home, in one of the US's most expensive cities for renters. Before the figure was less than 1%.

"There was a little bit of concern amongst pontificators out there that people would squander any gains that they would have. And we've really seen the opposite," Price says.

The amount of money that employees are voluntarily putting into their own pension funds has more than doubled and 70% of employees say they've paid off debt.

But Price did get a lot of flak. Along with hundreds of letters of support, and magazine covers labelling him "America's best boss", many of Gravity's own customers wrote handwritten letters objecting to what they saw as a political statement.

At the time, Seattle was debating an increase to the minimum wage to $15, making it the highest in the US at the time. Small business owners were fighting it, claiming they would go out of business.

The right-wing radio pundit, Rush Limbaugh, whom Price had listened to every day in his childhood, called him a communist.

"I hope this company is a case study in MBA programmes on how socialism does not work, because it's going to fail," he said.


Two senior Gravity employees also resigned in protest. They weren't happy that the salaries of junior staff had jumped overnight, and argued that it would make them lazy, and the company uncompetitive.
https://www.bbc.com/news/stories-51332811

3 replies, 787 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 3 replies Author Time Post
Reply update on the boss who slashed his salary to pay all employees a minimum of $70K (Original post)
Demovictory9 Mar 2020 OP
FM123 Mar 2020 #1
Stonepounder Mar 2020 #2
OneGrassRoot Mar 2020 #3

Response to Demovictory9 (Original post)

Wed Mar 4, 2020, 01:42 AM

1. Thanks for the update - I often wondered what ever happened to that guy and his company...

I am so glad to hear the good news!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Demovictory9 (Original post)

Wed Mar 4, 2020, 03:02 PM

2. When workers, at any level, feel appreciated they work a whole lot harder.

I know this from experience.

Thanks for posting this.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Demovictory9 (Original post)

Tue Mar 31, 2020, 07:48 AM

3. I highly recommend following him on twitter. n/t

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread