Gravity Payments Gravity Payments, that Seattle credit-card-payments processing company that said all its employees would earn at least $70,000 in three years, is defying the doomsayers.
Revenue is growing at twice the rate it was before Chief Executive Dan Price made his announcement this spring, according to a report on Inc.com. Profits have doubled. Customer retention is up, despite some who left because they disagreed with the decision or feared service would suffer. (Price said he'd make up the extra cost by cutting his own $1.1 million pay.)
Barely any employees have left — although some outsiders, including some commenting on a MarketWatch article about the decision earlier this year, warned that employees could start putting in less effort because everyone is being paid the same regardless.
Perhaps not surprisingly, plenty of people want to work for Gravity. One who now works there is a former Yahoo executive who says she took an 80%-to-85% pay cut to take the job, according to Inc.
The company has hired an extra 10 people to handle the anticipated new business, Gravity's vice president of operations, Maria Haley, told Inc.
Price, meanwhile, has invested another $3 million in the company after selling all his stocks, emptying his retirement accounts and taking out mortgages on two homes, according to Inc. (He told the New York Times three months ago that he was "renting out my house right now to try to make ends meet.)
"Having to depend on modest pay is not a bad thing," he told the magazine, speaking about himself. "It will help me stay focused."
Still hanging over him is a lawsuit filed by his brother, a Gravity co-founder and minority shareholder, that alleges Dan Price had previously paid himself "excessive compensation." Lucas Price's lawsuit isn't related to the pay increases, Inc. said, citing Lucas Price's lawyer.
This entry passed through the Full-Text RSS service - if this is your content and you're reading it on someone else's site, please read the FAQ at http://ift.tt/jcXqJW.
http://ift.tt/1NvMa0s The $70,000 minimum wage is paying off for that Seattle company - Revenue is rising at twice the rate it was before CEO Dan Price decided to raise pay via top scoring links : news http://ift.tt/1S5bhca
Put the internet to work for you.
| |
| Recommended for you |
No comments:
Post a Comment