Dan Price is the CEO of Seattle-based Gravity Payments and he just slashed his salary by nearly one million dollars.
While a CEO cutting their salary so significantly is abborational by itself, what he did with that money is even more rare and commendable. After taking a pay cut of $930,000, Dan directed those funds towards increasing the salaries of every member of his workforce. The company raised the minimum salary of their 120 employees to $70,000, previously the average pay was $48,000 per year. This increase affected more than half of the staff and a quarter saw their salaries double.
Dan Price explained his rationale to the Huffington Post in a recent interview, stating, “There’s greater inequality today than there’s been since the Great Recession. I’d been thinking about this stuff and just thought, ‘It’s time. I can’t go another day without doing something about this.’”
The Patriotic Millionaires applaud Dan Price for taking this step towards better compensating his workforce. Not only will this result in a happier, more productive, and more profitable company in the long run, it also will positively contribute to the broader economy. When workers are compensated at better rates, they have more money in their pocket. They will then put this money back into the economy by buying products and paying for services they otherwise wouldn’t on lower incomes. More companies should follow suit and the federal government should act to increase the minimum wage so hardworking Americans across the country also receive a much needed raise.