'They Deserve My Loyalty': CEO Takes Pay Cut to Raise Salaries to $70K
A Seattle-based CEO was on “Shepard Smith Reporting” to explain why he’s taking a pay cut to increase his employees’ salaries to at least $70,000 per year.
Fox News reported yesterday:
After hearing about a study that claimed income-- to a certain level-- directly affects one's emotional well-being, the founder of a Seattle-based credit card processing company announced Monday that he will take a large salary cut so he can increase the pay for each employee to at least $70,000 a year.
The New York Times reported that Dan Price, the head of Gravity Payments, told his 120-person staff about the plan after talking to friends about the difficulties of making $40,000 a year.
"As much as I'm a capitalist, there is nothing in the market that is making me do it," he told the paper.
Price said he will cut his nearly $1 million salary to $70,000 and use about 80 percent of the business’ anticipated profit to increase the salary of about 70 employees. About 30 employees, including the lowest-paid clerk, will see their salaries increase to the $70,000 threshold.
Price told Shepard Smith that this isn’t just a “handout.”
“Each member of my team deserved it,” he said.
The Gravity Payments CEO explained that his business is based on treating others the way he’d want to be treated. He said that he doesn’t want his employees to be distracted by whether they can buy a meal or pay their rent.
“The folks that are loyal to me, they deserve my loyalty, and really that’s what this is all about,” he said.