Gravity Payments CEO Dan Price has announced that he plans to raise the base pay of every employee to at least $70,000 per year over the next three years.
According to the New York Times, Price told his entire staff on Monday of the change. They report that Price began to contemplate the idea after reading an article on happiness: “It showed that, for people who earn less than about $70,000, extra money makes a big difference in their lives.”
How is Price going to be able to pay his 120 staffers this respectable wage?
He told the Times that he will cut his own salary of nearly $1 million to $70,000 per year, and use 75 to 80 percent of the company’s annual estimated $2.2 million in profits from this year to fund the raises. They report that it will affect about 70 employees’ wages, with “30 ultimately doubling their salaries, according to Ryan Pirkle, a company spokesman. The average salary at Gravity is $48,000 year.”