Gravity Payments’ $70,000 base salary is reportedly impacting the company and its employees for the better.
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One month ago Gravity Payments CEO Dan Price announced that he was extending the company’s $70,000 base pay to ChargeItPro, its newly acquired Boise, Idaho, business, as FOX Business reported. This came just four years after Price decreased his own salary from $1.1 million to $70,000.
As a result of the move, Gravity workforce’s turnover rate was reduced by nearly half, despite a competitive Seattle labor market where Amazon draws many potential employees.
While the company benefits from its competitive wages, first-time homeownership among the nearly 200 Gravity employees has increased significantly according to Price. He also noted similar growth in employee savings through the company’s 401(k) program.
“Best of all, we went from having zero to two babies born per year at the company to, just in the last four years, we’re well over 30 babies,” Price said on “Varney & Co.”
Prices' self-imposed pay reduction was intended to be temporary, he has decided not to return to his million-dollar paycheck.
“I’m just really enjoying this kind of more egalitarian system, and I think there’s a lot of wealthy people out there that if they tried something like this out … they would enjoy it more than they would ever think,” Price noted.