CEO Takes Pay Cut While Bumping Up Employee Salaries By Thousands

While many CEOs continue to earn millions as their workers earn just thousands a year, one CEO is changing that culture at his company.

Gravity payments is a Seattle based credit card processing company. They bought ChargeItPro in Eagle, Idaho recently. Gravity CEO Dan Price had the Idaho staff move into a new work space and then flew out to welcome them to the company.

While there, he announced that each worker would get an immediate $10,000 pay raise. Let that sink in . . . TEN-thousand dollars. Not only that, but within five years, the minimum salary for the staff will be $70,000.

Most of the acquired staff made less than $30,000 a year before that day. That upset Dan Price. He explained his actions by saying "I’m kind of heartbroken right now by the vast consolidation of wealth and power that's happening, and in addition how that's affecting our decisions around climate." He added "I'm sick of being part of the problem, I want to be part of the solution. Previously, I was making a million dollars a year and people working for me were making $30,000 a year and that's wrong, I was feeding into the problem."

Dan says he and other executives at the company took an 80% to 90% pay cut to make the company wide move to a $70,000 minimum yearly wage. He says other companies can absolutely do that and should.

Source:ABC News

PHOTO: Getty Images

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