Genius or Crazy

to introduce a $70,000 a year minimum wage? I'm going with genius.

One CEO has decided to boldly go where few have gone before by implementing a $70,000-a-year minimum wage from an average salary of $48,000 currently. Dan Price, chief executive and founder of Gravity Payments, a credit-card payment processing company, will also cut his own $1 million annual salary to $70,000, according to a report in the New York Times. “Is anyone else freaking out right now?” he asked his employees. “I’m kind of freaking out.” He will use 75% to 80% of the firm’s projected $2.2 million profit for 2015 to pay the salaries, the paper reports.

Is it genius or crazy to introduce a $70,000-a-year minimum wage? - MarketWatch

to introduce a $70,000 a year minimum wage? I'm going with genius.

 

One CEO has decided to boldly go where few have gone before by implementing a $70,000-a-year minimum wage from an average salary of $48,000 currently. Dan Price, chief executive and founder of Gravity Payments, a credit-card payment processing company, will also cut his own $1 million annual salary to $70,000, according to a report in the New York Times. “Is anyone else freaking out right now?” he asked his employees. “I’m kind of freaking out.” He will use 75% to 80% of the firm’s projected $2.2 million profit for 2015 to pay the salaries, the paper reports.

 

Is it genius or crazy to introduce a $70,000-a-year minimum wage? - MarketWatch

He is going to get the best and the brightest apply and will also have far less turnover. What he is not going to get is more work out of his employees. More money does not make people more efficient or make people work harder.

That's not minimum wage. The wording is misleading. Its a minimum salary for a job that is not a minimum wage job. Genius.

It's over a three period to get to $70k. Increase to 50,60, then $70k. I'm sure his projections over that time period will more than cover his payroll increases. Good for all involved and salute to this guy for actually doing it. Genius!

Not a bad idea, but I would not call it crazy either. In theory, production would go up but as said it would come up to whether or not people would work more efficiently.

I like the idea of increasing it at increments over 3-4 years.

On the surface it appears to a situation where a guy is putting money where his mouth is and I salute him for it. A big motivation was to highlight the income gap in this country. Instead of trying to address it by political means (i.e. redistribution of wealth), he took it upon himself to do it his own way, with his money.

I saw the thread title and thought it was about Mountain Ref. My bad.

:walk:

This will work until the company hits some time of hard time (like all business do at some point) or need to save cash for some reason, then these 70K a year minimum wagers will be the first ones let go, because they can be replaced with 40K minimum wagers.

Interesting...and dangerous. He is basically instituting a profit sharing plan via salaries instead of a bonus at the end of the year. Works great if profits increase or at least stay the same. Does not work so great if for some reason, profits decrease substantially. If profits do go down (and they always can), does he go back to the employees and ask them to take a cut?? I am not blaming the guy - he is helping out his employees which I see as good...but this is not without a lot of risk down the road.

Crazy but kudos to him for putting his money up.