Sunday 23 October 2016

Millionaire boss takes huge pay cut to give staff rise

Josie Ensor

Published 16/04/2015 | 02:30

Dan Price, founder of Gravity Payments
Dan Price, founder of Gravity Payments

The boss of a technology start-up in Seattle shocked his employees by announcing he was taking a massive pay cut to raise the salaries of the firm's lowest-paid staff.

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Dan Price, founder and CEO of credit card payment processing company Gravity Payments, decided to introduce a new minimum wage of $70,000 (€65,000) while reducing his own by 90pc. Mr Price (30), told staff that he would be cutting his $1m salary to $70,000 too, as well as eating into the company's profits to pay the extra money.

"You might be making $35,000 a year right now but everyone in here will definitely be making $70,000 a year and I'm super excited about that," said Mr Price (pictured), who started the firm from his bedroom as a teenager in 2004.

The national minimum wage in the US is around $7 an hour, which equates to $17,000 in gross annual income. According to research, the CEOs of Standard & Poor 500 companies made 354 times the average wages of US workers in 2012. Mr Price, whose company handled $6.5bn in transactions last year, decided to raise his employees' pay after reading a study about happiness in the workplace. (© Daily Telegraph, London)

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