Gravity Payments CEO cuts his $1mil salary to $70k to pay employees same.

[quote=“Nugget, post:160, topic:29556”][quote=“Charlotte2002, post:159, topic:29556”][quote=“Ninercentral, post:155, topic:29556”][quote=“Charlotte2002, post:150, topic:29556”][quote=“9erken, post:148, topic:29556”][quote=“CPA_Niner, post:132, topic:29556”]No, you are misinterpreting what I wrote. I stated if the person increases their standard of living, I did not say they would squander their money. You can increase your standard of living and maintain a budget but if you lose your job and you are unable to find a comparable paying job you may struggle to pay your bills.

You state it’s admirable to pay based on performance and skill set but yet that is not what Gravity is doing, so what are you supporting?[/quote]So then couldn’t the person decrease their standard of living upon loss of job and finding another job paying the lower “market rate”? I think you’d struggle to pay your bills only if you kept having the same bills. Earning more money for a short period also helps people create buffers for when they are fired.[/quote]

The fact is no one’s standard of living is guaranteed.

If a secretary earns $75k, buys a $300k house, gets laid off, then gets a $35k a year job they are in no worse a situation than the $100k a year engineer with a $400k house getting laid off and then having to work at Wal-Mart because of how the State of NC changed their unemployment rules.[/quote]

I hope the $100k a year engineer living in a $400,000 house is not a Niner because that’s just not good financial sense.[/quote]

Not to hijack this thread, but the net monthly pay of a $100k salary maxing out 401k in NC is around $4,600 a month. With 20% down, the monthly mortgage payments are $1,600 a month. Does buying a cheaper home in a crappier neighborhood make more financial sense?[/quote]
And, is there another income in the house?[/quote]
That would be a strong possibility or else why buy a whole house!

I had not seen this article, although it came out on 8/3.

The Seattle CEO who reaped a publicity bonanza when he boosted the salaries of his employees to a minimum of $70,000 a year says he has fallen on hard times.

Dan Price, 31, tells the New York Times that things have gotten so bad he’s been forced to rent out his house.

http://www.foxbusiness.com/business-leaders/2015/08/03/seattle-ceo-who-set-firm-minimum-wage-to-70g-says-has-hit-hard-times/?intcmp=obnetwork

So, an update on this. The bank I work for has partnered with Gravity, so I’ve recently gotten to know this company fairly well. They are thriving, and growing at a very healthy clip from what I can see. And the employees seem really happy. I don’t really have any financial specifics to add, but just wanted to throw in a first hand account that this company is doing quite well.

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I totally agree with the point as if the company is capable of paying to their employees then why not, as if you keep your employees happy then only they work in a more productive manner.

So this company has less than 50 employees and offers high end solutions to businesses. They are 5 years old or less. Based on the people listed on LinkedIn and the type of services they offer, I would anticipate 5% or less of their current employees saw an increase in pay due to the wage announcement. However, such a move will create free press for a growing business that is looking for customers.