Business as Unusual: CEO Cuts Salary to Give Workers $70K Minimum Wage

Did Dan Price, CEO of Gravity Payments, invent a radical business model last week by announcing that he would cut his own million-dollar paycheck to help finance a minimum annual wage of $70,000 for his 120 employees? Price insisted that the move was simply good business practice, citing studies showing worker satisfaction peaking at that annual income level. Other studies show correlations with workplace happiness and productivity, as well as lower turnover rates and overall better company performance. Price’s move may be unorthodox, but it quickly showed positive impacts: his credit card processing company has signed up several new clients and received more than 3,500 job applications. That sounds like basic bottom line business thinking, and an innovative strategy that is a winner.

John Howell, Editorial Director 

News & Blogs

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Guest blog by Kendyl Salcito and Mark Wielga, NomoGaia

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