CEO cuts $1M salary to pay employees at least $70K

Gravity Payments CEO Dan Price explains why he took a pay cut from his $1 million salary in order to pay the company's employees at least $70,000.

‘World’s Nicest Boss’ Can’t Make Ends Meet

By Business Leaders FOXBusiness

Dan Price, the credit card firm CEO who was called “the world’s nicest boss” back in April after slashing his $1 million salary in order to pay EVERY employee a $70,000 per year minimum wage -- including himself -- has fallen on hard times, according to the New York Times.

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According to the report, Gravity Payments has lost key talent over complaints the new compensation program rewards slackers and doesn’t provide incentives for hard work or innovation. Price told the Times he is now renting out his own house “to try and make ends meet.”

Price was on FOX Business Network’s Varney & Co. in April to discuss why he cut his million dollar salary to give others a raise.  

“I think this is going to be a great thing for our company. I think it’s going to be a great ROI. I think people that don’t think it’s going to be an ROI-- They are thinking too short term,” he said in April.

He also said at the time: “The way we look at it is about trust and about values… When you take care of people they tend to take care of you. About a year and half ago we instituted unlimited vacation for our team -- and sure enough productivity went up. Paid time off, even though it’s unlimited, didn’t really go up. When you trust people they really take care of you.”

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