CEO Opens Up About His Decision To Take A 90% Pay Cut To Raise His Staff’s Minimum Salary To $70,000

danpriceseattle via Instagram

Chances are the CEO of the company you work for makes quite a bit more than you do. Perhaps you’ve never thought that was a problem. Probably because it’s quite common.

According to the Economic Policy Institute, the average American worker makes $58,000 a year. The average CEO makes about 271 times that much.

Once upon a time, Dan Price, the Co-Founder and CEO of Gravity Payments, made $1.1 million. Meanwhile, some of his employees were making $30,000. One of those employees was a woman named Rosita. He explained how talking to Rosita led to his decision to take a huge pay cut in order to increase the minimum salary to $70,000.

Listening to his employees has had long term effects. During the pandemic, his employees actually chose to take pay cuts to prevent any employees from being laid off.

Price is humble about his decision to listen to his employees and take a pay cut. He explains that he only looks good in comparison to other CEOs.

Price’s employees are thankful to work for such a caring boss, and they have shown him their appreciation in big ways, like pooling their money to buy him a Tesla.

Do you think more CEOs should voluntarily take pay cuts so they can afford to pay their employees more?