Wednesday, August 5, 2015

CEO Who Raised Minimum Salary To $70k May Be Learning His Lesson The Hard Way

Dan Price was praised as a progressive hero. Price, the CEO of Seattle-based Gravity Payments, announced he was raising the minimum salary for employees of his company to $70,000, but what is hapenning to Price now should serve as a textbook illustration as to how not to run a business...

(Daily Caller) Price has had to rent out his own house to help cover his bills. In addition, the New York Times reports Gravity lost two of its most valuable employees whose departure was “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.”

Most of the company’s profits, $2.2 million last year, were reinvested in the company not to expand or innovate, but to cover the new minimum wage.

Price's brother and Gravity co-founder, Lucas Price, has also filed a lawsuit against the company that it, thanks to the new higher payroll, finds itself having difficulty paying legal fees for...

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Posted By: Chris Carmouche