A CEO who gave all his employees a minimum wage of $70,000 (£51,300) has insisted six years later that it has paid off.
After discovering that one of his employees had taken an unofficial second job at McDonald’s to supplement her income, Dan Price, 37, who is the boss of Gravity Payments credit card payment company, raised his staff’s salary.
The staff member, on a £31,000 salary, was struggling with her bills living in Seattle, US, reports the Mirror.
Price also slashed his own salary by £730,000 to help fund the pay rises, as well as selling a second home and spending some of his savings.
He lowered his own salary to around £51,300, the same as his lowest-paid employee.
Opinion was split at the time. Some said he would go bankrupt, while others thought he was a great boss.
But six years on and the move has paid off, Price told CBS News.
He is still paying his employees at least £51,300, and he said that Gravity has tripled in size since the move.
He also said that his staff is now more loyal and work harder.
“Our turnover rate was cut in half, so when you have employees staying twice as long, their knowledge of how to help our customers skyrocketed over time and that’s really what paid for the raise more so than my pay cut,” he said.
The staff recently came together to purchase a Tesla for Price in recompense.
“My employees have done way more for me than I could ever do for them. So the fact that they wanted to get me such an unreal, amazing gift, it’s pretty special. I don’t know if I can put it into words,” Price spoke out.
Price, who started Gravity at age 20 in 2004, is outspoken against the excesses and high executive pay.
Research showed last month that more than five million people became millionaires during the pandemic, meaning that there are now around 56 million millionaires in the world.
Bank Credit Suisse has found that the UK is home to 4% of the highest number of high-net worth individuals worldwide. This makes it the fifth most wealthy country in the world.
The United States has 39% more millionaires than the rest.
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