A CEO who raised the minimum wage for his staff to $70,000 has been given a Tesla from his employees to show their appreciation.
Six years ago, Dan Price, the founder and CEO of Seattle-based credit card processing company, Gravity Payments, cut his own salary in order to raise the wage of all of his staff.
Price’s staff previously had starting wages of around $35,000, however as the company began to grow, he decided to look after his employees, by making sure they had enough money to look after themselves.
Price raised raised the minimum salary to $70,000 per year for all his employees, by cutting his own $1 million salary.
Speaking to Insider, Price explained that at first, everyone thought they would fail because of the move.
“The media in general said we would fail. Or even in some cases, rooted for us to fail,” he said.
But, now they are years down the line, Price believes he’s proved them wrong, as the company has more than tripled its payment-processing volume for small businesses. And according to Price, revenue grew every year following the change, up until the pandemic hit which caused the company to loose fifty percent of its revenue.
But not only has the wage increase helped the company, it’s also helped his employees.
“It’s been over 6 years and we’ve had really fantastic results. We’ve had a ten times increase in the number of first-time homeowners every year and seventy percent of our employees were able to pay down debt,” Price explained.
“Our employees had a ten times boom in terms of the number of babies they were having. We went from having between 0-2 babies born per year among the entire team, to over sixty-five born or announced over the last 6 years.”
By increasing his employees’ wages, Price seems to have made a positive effect on their lives as a whole, and it doesn’t go unnoticed by his staff.
To show their appreciation of the salary growth, the employees at Gravity Payments decided to buy Price a Tesla.
Sharing his gratitude for the gift, Price wrote on Instagram: “5 years ago today our employees bought me a Tesla to thank me for cutting my CEO pay ninety-four percent to pay them at least $70k. Since then I paid them back with raises close to $100k and they paid me back again by growing the company. Take care of employees and they will take care of you.”
He also told Insider the Tesla was a “beautiful gesture” that shows the “amazing relationship” he has with employees.
“That was a really beautiful gesture and any day I drive to work or a client meeting, I can just feel the amazing relationship we’re able to have,” Price said.