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Why Did Dan Price Raise Gravity Payments' Minimum Wage to $70,000?
The CEO read a research paper on pay and happiness, and The New York Times reported it on April 13, 2015.
Dan Price, CEO Gravity Payments
Dan Price, founder and CEO of Gravity Payments, raised the company's minimum salary to $70,000 after reading a research paper on pay and happiness. The New York Times reported the story on April 13, 2015.
To help pay for the raises, Price will drop his own salary to $70,000 from $1 million, and redirect a good chunk of the company’s expected profits this year towards them.
“The market rate for me as a CEO compared to a regular person is ridiculous, it’s absurd,” Price told the Times. In the US, an executive makes over 350 times the salary of an average worker ($12,259,894 to $34,645). In 2013, it took the average McDonald’s worker seven months to earn what its CEO Don Thompson made in an hour.
“Everyone is talking about this $15 minimum wage in Seattle and it’s nice to work someplace where someone is actually doing something about it and not just talking about it,” Hayley Vogt, a 24-year-old employee who earned $45,000, told the Times.
Twenty-three US states will increase their minimum wage this year. Seattle raised its minimum wage to $15 per hour, easily the highest in the country. As millions of workers both in the US and around the world call for an increase in wages, politicians seem to be responding, if only in piecemeal fashion. But at least one CEO, publicity stunt notwithstanding, is taking matters into his own hands.
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“The market rate for me as a CEO compared to a regular person is ridiculous, it’s absurd,” Price told the Times. In the US, an executive makes over 350 times the salary of an average worker ($12,259,894 to $34,645). In 2013, it took the average McDonald’s worker seven months to earn what its CEO Don Thompson made in an hour.
“Everyone is talking about this $15 minimum wage in Seattle and it’s nice to work someplace where someone is actually doing something about it and not just talking about it,” Hayley Vogt, a 24-year-old employee who earned $45,000, told the Times.
Twenty-three US states will increase their minimum wage this year. Seattle raised its minimum wage to $15 per hour, easily the highest in the country. As millions of workers both in the US and around the world call for an increase in wages, politicians seem to be responding, if only in piecemeal fashion. But at least one CEO, publicity stunt notwithstanding, is taking matters into his own hands.
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What research drove the decision?
Price read a paper arguing that people who make less than $70,000 can truly become happier by earning more money.
Who does the raise cover?
He decided to lift everyone's salary to a minimum of $70,000, including the employees lowest on the corporate ladder.
Where did the story first appear?
The New York Times ran it on April 13, 2015, and the article on YourInfoDaily originally appeared on Quartz.
Quick answers
Who is Dan Price? Founder and CEO of Gravity Payments.
What is the new minimum salary? $70,000 a year.
When did the Times report it? April 13, 2015.
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