The rich are getting richer and the poor are getting poorer, but this CEO thinks that shouldn’t be the case and is actually putting his money where his mouth is. Dan Price, CEO of Gravity Payments, just announced that he will be taking a significant pay cut so that every single employee at his company will have a minimum $70,000 salary.
30 employees in the company will be doubling their salary, while 40 others will have their paychecks grow.
This landmark decision comes as the debate over rising pay of CEOs is becoming more prevalent, and on the heels of the 99 percent movement. In fact, the Economic Policy Institute says that CEOs at the top US companies make nearly 300 times as much money as the average worker. If Price does indeed cut his salary down to $70,000, then he will be making as much as or even less than some of his own employees.
Price said “As much as I’m a capitalist, there is nothing in the market that is making me do it.” He hopes this decision will help his employees live the “American dream.”
Price started the firm when he was just 19 from his dorm room while attending Seattle Pacific University. His company served more than 12,000 businesses in 2014, amounting to $6.5 billion in transactions.