Tuesday 16 January 2018

Millionaire boss takes huge pay cut to give staff rise

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

Josie Ensor

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.

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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