CEO cut's salary so he can raise workers pay to 70,000/yr

submitted by Mordhaus
9 years 6 months 1 week ago

19 Comments

siftbotsays...

Promoting this video and sending it back into the queue for one more try; last queued Sunday, May 17th, 2015 11:06pm PDT - promote requested by eric3579.

JustSayingsays...

I see, he's playing the long game. That's the problem today, everybody tries to rake in as much as possible in the shortest amount of time possible without thinking of the long term effects.

Mordhaussays...

Yeah part of the way he is paying for the raises is to lower his own salary and use profits instead of reinvesting or banking them.

I was reading a recent list of the highest paid CEO's, the top 10 I think, and they are all from US companies. We need more CEO's to take the long term vision and pay their employees more. A dedicated employee does quality work and you get a better product. I don't see it happening anytime soon though.

eric3579said:

Watched another video where he says his salary will go from a million a year to 70,000 and his companies profits will be cut in half from the raises. Just Wow! .http://www.cbsnews.com/news/gravity-payments-ceo-dan-prices-raise-minimum-pay-economics/

lantern53says...

from Forbes:

Unfortunately, this well-intended gesture is likely to either end badly or just end quietly. It will end badly if the company enacts the program as written, as Gravity is likely to experience reduced investor interest due to unusually high labor costs. A growing company with a $70,000 entry-level wage for every employee will be a difficult sell in the capital markets.

More likely, the plan will end quietly. As investors weigh in and influence company policy, the $70,000 minimum wage is likely to be drastically modified and adjusted. Conditions are likely to be placed on earning the $70,000 minimum, and industry standard wages will be subsidized with bonuses and other cash incentives to maintain the appearance of a $70,000 minimum wage. People unable or unwilling to commit to a bonus-based or incentive-based system will not select themselves for employment at Gravity. Within three years, Gravity’s pay structure will probably revert to industry standards, and Price’s minimum wage will be seen as a well-intended, but economically naïve, compensation plan.

petpeevedsays...

Shocking that one of the leading mouthpieces and corporate apologists for the diseased form of capitalism that is capsizing the former republic of the United States of America would be predicting that 'market forces' will maintain an environment where CEOs such as Dan Price, who are confused as to which side of the class war they are on, will be strongly discouraged from closing the historical chasm of income disparity with their workers via a complex and myriad assortment of carefully implemented internal structures, that have been embedded over several decades starting with Reagan, and will serve to doom any business to failure for not prizing profit, and the unequal distribution of profit, over all other considerations such as income parity.

The most interesting aspect of this experiment isn't whether it succeeds or fails in the long run but rather that it will someday be used as a prime example by people like Chris Hedges who argue that the form of crony capitalism plaguing the West cannot and should not be reformed but rather destroyed and replaced with a system that doesn't have as its main aim the impoverishment of workers for the sole benefit of an oligarchical aristocratic elite.

lantern53said:

from Forbes:

Unfortunately, this well-intended gesture is likely to either end badly or just end quietly. It will end badly if the company enacts the program as written, as Gravity is likely to experience reduced investor interest due to unusually high labor costs. A growing company with a $70,000 entry-level wage for every employee will be a difficult sell in the capital markets.

More likely, the plan will end quietly. As investors weigh in and influence company policy, the $70,000 minimum wage is likely to be drastically modified and adjusted. Conditions are likely to be placed on earning the $70,000 minimum, and industry standard wages will be subsidized with bonuses and other cash incentives to maintain the appearance of a $70,000 minimum wage. People unable or unwilling to commit to a bonus-based or incentive-based system will not select themselves for employment at Gravity. Within three years, Gravity’s pay structure will probably revert to industry standards, and Price’s minimum wage will be seen as a well-intended, but economically naïve, compensation plan.

9547bissays...

Or alternatively, Forbes and their imaginary investors could just fuck off, since Gravity is privately held...

They are in the payment processing business, historically a high-margin one, they're not going anywhere any time soon.

lantern53said:

from Forbes:

Unfortunately, this well-intended gesture is likely to either end badly or just end quietly. It will end badly if the company enacts the program as written, as Gravity is likely to experience reduced investor interest due to unusually high labor costs. A growing company with a $70,000 entry-level wage for every employee will be a difficult sell in the capital markets.

Asmosays...

You're expecting Lantern to be informed enough to know that the company is privately held? /chuckle

9547bissaid:

Or alternatively, Forbes and their imaginary investors could just fuck off, since Gravity is privately held...

They are in the payment processing business, historically a high-margin one, they're not going anywhere any time soon.

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