Gravity Payments founder and CEO, Dan Price.
Posted on 04/15/2015 9:20:39 AM PDT by SeekAndFind
He’s making a mistake. Keep the salaries the same. Give them a share of the profits.
Gravity Payments will soon be bankrupt, bet on it.
If I knew anything about the credit card processing business I’d start a company in Seattle and undercut the competition. No was Gravity can compete with that kind of overhead.
He makes his money with stock options.
Bankrupt in a few years. When the company starts struggling will he ask for the money back to keep it going? lol
Agreed. Many folks spending increases to match their earnings. After three years, if these folks have their salaries “cut” to market rates, many will be in trouble financially.
I agree because they may work harder.
Yeah, the gods of the copybook headings will have the final say in this.
Paying someone a salary “just because” instead of because they provide more value to the business
is a predetermined losing position.
Prediction: When this socialist experiment fails, you will not find stories of it from the same people who reported it.
Its his money.
If he finds it makes his employees happier, more productive and makes his business better - then good for him.
That is very generous of him, and it is his money to do with as he wishes. But what happens when if/when the company goes under, and that receptionist making $70k has to go back to making $20k? Because you know all of these people will buy houses and cars based on what they are making, not based on what their job is actually worth on the open market...
Well he’s putting his money where his mouth is. I just wonder if he ran this by his CPAs and if they did some financial forecasts for him, to see if this works long term. I also didn’t know that credit card processing could be so profitable.
I disagree. Paying people a significant amount over a prevailing wage all but guarantees a drastic reduction in turnover and training costs. The company is also going to benefit as the depth of the collective knowledge and experience of the firm grows over the years.
Variations on this same strategy have worked just fine for Google, Genentech, and Ford Motor Company - whose founder Henry Ford created this innovation in using wages to improve employee conditions and then to improve retention and productivity.
Normally I would agree, however, this is not necessarily a "socialist experiment". No gov't is involved - it's not something that's being mandated - this is of his own free will, and I approve. I WILL, however, be very interested in seeing how it all pans out. I'd be willing to bet that those that were already @ the $70k mark, due to education, experience, etc. would be pretty upset. I'm holding judgement to see the results.
“I also didn’t know that credit card processing could be so profitable.”
Legalized money laundering, and you get to keep a slice.
> He’s making a mistake. Keep the salaries the same. Give them a share of the profits.
I agree. He will be bankrupt in no time. Its a nice gesture or PR move but unless he has plenty of reserves the reality of his error in judgment for the sake of notoriety is going to be a swift kick in the a$$
Didn’t Ben and Garry pull some stunt like this? As I recall they were bragging about making the same as their employees or something like that. Ends up they had bottomless expense accounts and incredible benifits.
Well certainly they did, that stuff isn’t taxed.
Liberals aren’t necessarily stupid, just greedy.
Just like Hillary’s $300 grand for a 45 minute speech goes to the CGI rather than being taxed as income.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.