Company is imploding. CEO is broke.
The Seattle CEO who reaped a publicity bonanza when he boosted the salaries of his employees to a minimum of $70,000 a year says he has fallen on hard times.
Dan Price, 31, tells the New York Times that things have gotten so bad he?s been forced to rent out his house.
Only three months ago Price was generating headlines?and accusations of being a socialist -- when he announced the new salary minimum for all 120 employees at his Gravity Payments credit card processing firm. Price said he was doing it, and slashing his $1 million pay package to pay for it, to address the wealth gap.
?I?m working as hard as I ever worked to make it work,? he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. ?I?m renting out my house right now to try and make ends meet myself.?
The Times article said Price?s decision ended up costing him a few customers and two of his ?most valued? employees, who quit after newer employees ended up with bigger salary hikes than older ones.
?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,? Gravity financial manager Maisey McMaster, 26, told the paper.
