CEO takes 90% pay cut to increase staff’s minimum salary to £50,000
Team Udayavani, Aug 2, 2021, 7:19 PM IST
Dan Price, CEO of a credit card processing company Gravity Payments took a huge pay cut to ensure that his employees had a liveable wage.
In a Twitter thread, Dan wrote that he first realized his staff was having money troubles when he found a McDonald’s handbook on the desk of an employee named Rosita – who was training to become a manager at the fast-food chain.
Turns out the employee had to take up this second job because she couldn’t survive on the income Dan’s company paid her.
How I learned to be a better boss:
I was a bad CEO. 7 years ago, I found a McDonald's training handbook on the desk of an employee named Rosita. Turns out she was training to become a manager there because she couldn't survive on the income I paid here. I called her to my office
— Dan Price (@DanPriceSeattle) July 29, 2021
Dan further wrote, “She was hiding the McD’s handbook and thought her 2nd job would get her fired. What kind of culture had I created? Scarcity and fear. Rosita is a college grad but was making $30k a year. She’d leave our job at 5 and secretly work 5:30-11 every weeknight at McD’s for 1.5 years.”
Rosita informed Dan that she needed a $10,000 (£7,156.50) raise to quit the second job – which he agreed to if she took on some extra duties. He wrote, “She quit the McD’s job, moved out of her crappy apartment, and used the free time to see her friends more. As her mental health improved, so did her work performance.”
Rosita soon got promoted to director of operations.
“A light bulb went off: What if we did this for everyone? So we more than doubled our minimum wage to $70k. Since then our productivity and revenue have tripled. 10x more staff bought homes and had babies,” wrote Dan.
Dan decided to double the minimum salary of the company to $70,000 (just over £51,000).
He further asserts, “The biggest thing I learned? Listen to your damn employees. Never assume you know what’s going on – never make top-down decisions without their input.”
He said that they hold weekly company meetings with everyone invited and have multiple reps from each team vote on our priorities each year.
He said, “I don’t miss anything about the millionaire lifestyle.”
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Gujarat family holds burial event for ‘lucky’ car; 1,500 people attend
Terminal 2 of Bengaluru airport gets 4,000 sqft hydroponic green wall
US election result: Elon Musk leads meme brigade on social media
Miraculous survival: Two months on, abandoned newborn conquers 50 wounds, animal bite in UP
Groom in Turkiye, bride in Himachal, couple has virtual ‘nikah’
MUST WATCH
Latest Additions
No greater feeling than serving those in need: Outgoing CJI D Y Chandrachud
Baikampady: Here, even elederly have to crawl under trains to cross tracks!
CJI Chandrachud: A legacy of landmark verdicts that shaped society and some controversy too
Neeraj Chopra to head to South Africa for off-season training later this month
Sensex, Nifty fall for 2nd day on FII selling; RIL, ICICI Bank major drag
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.