Posted on 07/31/2015 3:44:29 PM PDT by Oldeconomybuyer
When Dan Price, CEO of the Seattle-based credit card payment processing firm Gravity Payments, announced he was raising the company's minimum salary to $70,000 a year, he was met with overwhelming enthusiasm.
But in the weeks since then, it's become clear that not everyone is equally pleased. Among the critics? Some of Price's own employees.
Two of the company's "most valued" members have left the company, "spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises."
Maisey McMaster — once a big supporter of the plan — is one of the employees that quit.
"He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump," she told the Times.
Grant Moran, 29, had similar concerns. While his own salary saw a bump he worried the new policy didn't reward work ethic. "Now the people who were just clocking in and out were making the same as me." "It shackles high performers to less motivated team members."
For his part, Price — who's also under fire from other local business owners and his brother, who says Price owes him money — stands by his plan, but doesn't begrudge his critics.
(Excerpt) Read more at businessinsider.com ...
I just told Mrs Gamecock about this post. Her reply? “Didn’t you say this was going to happen when the story first broke?”
If I own a company and want to put a floor on wages, using my money, I’m a communist?
These fellows just aren't being good socialists.
The company should be glad to get rid of them.
an idiot who will put himself out of business and thereby solve the problem, anyway
I don’t understand: Are we saying the government should force him not to do this? It’s his company, he can make his own decisions and succeed or fail on it. I am totally against the government interfering.
He probably did this to avoid paying taxes on profits. He shifted profits to expenses in the form of payroll.
Now, if the company shows no profit and high payroll expense, who will want to invest or loan him money? What money will he use to build up the company?
He certainly could have repaid his brother, who apparently did lend him money to build his business, before giving major raises to employees.
Exactly!
I don’t think what this company is doing is communism. The government didn’t force them. Employees who don’t like it should leave, and they have left. The CENTER made a decision and it will fail or succeed.
Generally, capitalism is associated with a meritocracy. CEO Price, who seems to be admirable, has created a socialist utopia where exceptionalism has no reward. His company will fail.
<<< It’s his company, he can make his own decisions and succeed or fail on it. >>>
Of course.
Communism is done with government force. Thus is a business decision that may fail or succeed.
It may actually get a lot worse for them.
Gravity Payments, according to two web sources I seen have anywhere from 100 to 250 employees and have revenue of up to 10 million per year. I understand that this info may not be exact or up to date.
However, at 10 million per year and ONLY 100 employees, (giving them the benefit of doubt)that equals $100,000 of revenue per employee and they are paying them $70,000.
That’s insane !!!!
They will be out of business before too long.
It’s his money. You can start a company and do it a different way.
Yet rational people can draw parallels between two different things that share certain similar aspects while exhibiting varying details, don’t you agree?
I missed the post where someone suggested otherwise. Can you point it out to me?
Lucas Price accused his brother of paying himself excessively and depriving Lucas of his shareholder rights, according to the Times. Lucas Price reportedly wants Gravity Payments to repurchase his shares and provide financial documents and records.
The lawsuit pits two brothers, the cofounders of Gravity Payments, against one another.
When Dan Price announced the new minimum wage at Gravity Payments, he also pledged to cut his own pay to $70,000 a year from about $1 million to help spread the wealth among his employees. The CEO also said the new wage plan would likely eat into up to 80% of the company’s forecasted $2.2 million profit this year.
Sounds like plan to screw his brother out of his minority shares, rendering them worthless, forcing him to sell, then going back to business as usual. JMO.
If you want to pick a fight based on this story, choose someone else. I’m busy.
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.