It’s not every day that the new boss flies in to give employees the stunning news that they’re getting an instant raise to meet a $50,000 minimum salary, but Gravity Payments CEO Dan Price isn’t a typical boss.
Price, who helms the Seattle-based payment processing company, famously slashed his $1 million salaries in 2015 to give all employees a minimum $70,000 salary. His company recently acquired ChargeItPro, an Eagle, Idaho-based company, and moved those employees into a new office last month. That’s when Price decided to fly to Idaho and surprise the team with some good news.
There was “general excitement and gratitude all around. I received a lot of high fives, hugs, and handshakes that day. It was a tremendous feeling,” Price told TODAY.
Most employees at the company were making under $30,000, according to Price. As part of the deal, he committed to immediately raising the minimum salary to $50,000, offering many employees a significant pay bump. He’ll also give employees a $5,000 raise each year, culminating in a minimum $70,000 annual salary by 2024.
Price said he was inspired to start the minimum income experiment after he read an article that detailed how more money can make a crucial difference in fostering happiness in the lives of people making less than $70,000.
Almost four years after he first announced the pay bumps, Price told TODAY he has been heartened to see what a difference it has made in the lives of his employees.