Linked by Thom Holwerda on Sat 1st Aug 2015 11:12 UTC
In the News

Three months ago, Mr. Price, 31, announced he was setting a new minimum salary of $70,000 at his Seattle credit card processing firm, Gravity Payments, and slashing his own million-dollar pay package to do it. He wasn't thinking about the current political clamor over low wages or the growing gap between rich and poor, he said. He was just thinking of the 120 people who worked for him and, let's be honest, a bit of free publicity. The idea struck him when a friend shared her worries about paying both her rent and student loans on a $40,000 salary. He realized a lot of his own employees earned that or less.

Yet almost overnight, a decision by one small-business man in the northwestern corner of the country became a swashbuckling blow against income inequality.

Whether you support his actions or not, ask yourself this question: what does it say about our society that a young man slashing his own salary to increase that of his employees draws more ire than a CEO raising his own salary to 70 times that of an average employee?

Most mystifying of all, though, are the employees leaving because their coworkers got a pay raise to $70000, while they themselves already earned $70000. I don't understand this mindset. You still have your salary. You still get your $70000, except now your fellow men and women on the work floor also get it. Is your self-worth really derived from earning more than the people around you? Is your sense of self really dictated by how much more you earn than Jim from accounting or Alice from engineering?

Maybe I'm just too Dutch and too little American to understand this mindset, but I firmly believe this world would be a massively better place if more CEOs cut their own salaries to raise that of their employees.

Permalink for comment 615096
To read all comments associated with this story, please click here.
Interesting
by DrJohnnyFever on Sat 1st Aug 2015 12:00 UTC
DrJohnnyFever
Member since:
2012-03-07

I don't in principle think its bad for a CEO to make a lot of money, unless they are really bad at their job. That said I do find this interesting. I can see how someone might be annoyed if they have been working hard trying to get a pay raise, and someone else gets one instead even though they've been doing the same crummy job for years and years. Not to say thats happened in this case, but if it did. In America at least, and I think other places, a pay raise is a form of recognition for hard work and dedication, its more than just money. Not to say its right but some may view it as a slap in the face to see everyone else's pay get raised but their own and I don't think that necessarily makes them mean people.

Reply Score: 1