Handsome and compassionate CEO cuts his own salary to give fantastic raises to his employees
In case you haven't heard, Dan Price is perhaps the first American millionaire CEO to not only cut his own salary to give raises to his employees, but he is making sure the minimum salary is $70,000 a year for all 120 employees. This news is truly stunning because, by comparison, big companies like Walmart just made headline news by raising the minimum wage to $10 an hour. Why did Dan make this stunning decision?
Dan Price started Gravity Payments in 2004 when he was only 19 and living in the dorms. True to his calling, he started the business because he wanted to help business owners get relief from high credit-card processing charges. The company has grown to process $6.5 billion in transactions for more than 12,000 businesses in 2014. The average salary of his 120 employees is around $48,000 a year, but that's going to change significantly.
What influenced Dan to make his momentous and stunning decision? The first is from reading and learning that making more money beyond $75,000 a year does not significantly improve someone's happiness in life. However, "for people who make low five-figures, a bigger paycheck makes a meaningful difference in the emotional quality of their daily lives." Over the years, Dan also talked to many people and learned from doing the math that even making $40,000 a year was tough to make ends meet for a family. So he has decided to make $70,000 a year as the minimum wage for every one of his employees.
To finance the raises, Dan is not just cutting his own salary, he is also contributing 75% to 80% of the company's anticipated $2.2 million in profit this year. He'll be making $70,00 a year, which, according to him, is plenty to live on for him. Many of his employees, especially those who previously made the lowest salaries, now feel that they can have stability in their lives and can reach their dreams.
I suppose you can't call him a millionaire anymore since he'll "only" make $70,000 now, but he has won millions of hearts from people who admire him for his gutsy move as a business leader and for his compassionate belief that he has put into action.
Dan Price is a true millionaire of hearts!
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(photo: Gravity Payments website)