The CEO Paying Everyone $70,000 Salaries Has Something to Hide

[mjvcaj]

Didn't want to hijack the other thread, but some interesting legal issues and allegations coming out against Mr. Price.

It seems his entire decision was selfish after all. He may be a genius, but also a sociopath.

www.bloomberg.com/features/2015-gravity-ceo-dan-price/

 

[cosmickid]

Didn't want to hijack the other thread, but some interesting legal issues and allegations coming out against Mr. Price.

It seems his entire decision was selfish after all. He may be a genius, but also a sociopath.

www.bloomberg.com/features/2015-gravity-ceo-dan-price/

So Fox News pilloried him for being altruistic and naive,and it turns out he was probably more motivated by greed and selfishness.Exactly the kind of CEO folks like Fox and especially Rush are more likely to view as a model to emulate.How ironic...

 

[mjvcaj]

So Fox News pilloried him for being altruistic and naive,and it turns out he was probably more motivated by greed and selfishness.Exactly the kind of CEO folks like Fox and especially Rush are more likely to view as a model to emulate.How ironic...

How is that any different from MSNBC and NBC that lauded this guy as a hero?

 

[crazed_hoosier2]

it turns out he was probably more motivated by greed and selfishness.

I take it as a given that just about anybody -- the rare exceptions being folks like Mother Teresa -- is primarily motivated by their own self-interest (which, as we've discussed before, is distinct from greed).

I say "primarily" because I fully realize that many people (including the vast majority of wealthy ones) do a whole lot that doesn't, directly anyway, benefit themselves. They may get tax deductions for those big donations you see on walls of so many non-profit entities. But they'd still keep more in their pocket if they didn't make the donation than if they did. And, of course, many people put in many hours of volunteer work...in addition to, or in lieu of, financial gifts.

But these sorts of motivations are, for most people, secondary. We're all primarily motivated by our self-interest, including people who work for an hourly wage.

 

[Marvin the Martian]

Did I miss it? What seemed missing to me is one simple question, how is the company doing after the change? Regardless of the CEO and his motivations, if the company's performance is better isn't that a data point of note? If it is doing worse, that also is a data point of note. The CEO is almost irrelevant.

I was reading some of the tricks Zapatos does. For example, after training they offer people a couple thousand dollars to leave and never come back. There point is that getting people out there who don't want to be there and/or would leave soon anyway is worse for the business than paying that money up front. It seems to work for them to let the employees self-select like that. I know to traditionalists it sounds crazy. But I like the idea of business not just doing the same thing they've don't for a hundred years. It gives us data to make decisions upon. In the story linked, I wish the author had focused more on how profitability has changed. Or perhaps I missed it during my skimming as I don't really care about this CEO.

 

[Aloha Hoosier]

Did I miss it? What seemed missing to me is one simple question, how is the company doing after the change? Regardless of the CEO and his motivations, if the company's performance is better isn't that a data point of note? If it is doing worse, that also is a data point of note. The CEO is almost irrelevant.

I was reading some of the tricks Zapatos does. For example, after training they offer people a couple thousand dollars to leave and never come back. There point is that getting people out there who don't want to be there and/or would leave soon anyway is worse for the business than paying that money up front. It seems to work for them to let the employees self-select like that. I know to traditionalists it sounds crazy. But I like the idea of business not just doing the same thing they've don't for a hundred years. It gives us data to make decisions upon. In the story linked, I wish the author had focused more on how profitability has changed. Or perhaps I missed it during my skimming as I don't really care about this CEO.

The other article on this posted in the "Who said this . . . " thread said it's doing worse in terms of profit.

 

[mjvcaj]

Did I miss it? What seemed missing to me is one simple question, how is the company doing after the change? Regardless of the CEO and his motivations, if the company's performance is better isn't that a data point of note? If it is doing worse, that also is a data point of note. The CEO is almost irrelevant.

I was reading some of the tricks Zapatos does. For example, after training they offer people a couple thousand dollars to leave and never come back. There point is that getting people out there who don't want to be there and/or would leave soon anyway is worse for the business than paying that money up front. It seems to work for them to let the employees self-select like that. I know to traditionalists it sounds crazy. But I like the idea of business not just doing the same thing they've don't for a hundred years. It gives us data to make decisions upon. In the story linked, I wish the author had focused more on how profitability has changed. Or perhaps I missed it during my skimming as I don't really care about this CEO.

It sounds like revenue is up but profitability is still negative per some articles I have read. The long-term impact is still TBD.

 

[Marvin the Martian]

The company is still alive and has almost tripled its employees. Price won the lawsuit filed by his brother. Maybe it is still a fairy tale?

CEO Who Raised Company Minimum Wage to 70K Says Revenue Has Tripled

Gravity Payments' Dan Price, who sacrificed his own assets to raise employees' wages, says, "Always invest in people."

www.google.com

When he tweeted this week, he said "always invest in people". I do think an argument is easily made that too many in business only view employees as expenses.

 

[mcmurtry66]

The company is still alive and has almost tripled its employees. Price won the lawsuit filed by his brother. Maybe it is still a fairy tale?

CEO Who Raised Company Minimum Wage to 70K Says Revenue Has Tripled

Gravity Payments' Dan Price, who sacrificed his own assets to raise employees' wages, says, "Always invest in people."

www.google.com

When he tweeted this week, he said "always invest in people". I do think an argument is easily made that too many in business only view employees as expenses.

I've found that no matter how small giving out a little equity makes a massive difference. It's psychologically distinct from wages

 

[JamieDimonsBalls]

The company is still alive and has almost tripled its employees. Price won the lawsuit filed by his brother. Maybe it is still a fairy tale?

CEO Who Raised Company Minimum Wage to 70K Says Revenue Has Tripled

Gravity Payments' Dan Price, who sacrificed his own assets to raise employees' wages, says, "Always invest in people."

www.google.com

When he tweeted this week, he said "always invest in people". I do think an argument is easily made that too many in business only view employees as expenses.

Growing revenue is only one factor in the equation. He also admitted that the company almost went under in 2020. In order for it not to go into bankruptcy, employees had to take "voluntary" pay cuts.

The company did take a hit during the COVID-19 pandemic, losing 55% of its business in March 2020. At one point, Price figured Gravity was only four months away from failing, but it bounced back after its employees voluntarily took a temporary pay cut.

 

[Marvin the Martian]

Growing revenue is only one factor in the equation. He also admitted that the company almost went under in 2020. In order for it not to go into bankruptcy, employees had to take "voluntary" pay cuts.

The company did take a hit during the COVID-19 pandemic, losing 55% of its business in March 2020. At one point, Price figured Gravity was only four months away from failing, but it bounced back after its employees voluntarily took a temporary pay cut.

But they did survive, there have been a decent number of bankruptcy during covid.

 

[JamieDimonsBalls]

But they did survive, there have been a decent number of bankruptcy during covid.

In what sectors? Tech and tech-enabled services? Not so much.

 

[UncleMark]

In what sectors? Tech and tech-enabled services? Not so much.

They lost 55% of their business, presumably meaning revenue. Was that because their payroll was too high?

 

[JamieDimonsBalls]

They lost 55% of their business, presumably meaning revenue. Was that because their payroll was too high?

what do you think a bunch of high salaried employees are? Fixed costs

 

[UncleMark]

what do you think a bunch of high salaried employees are? Fixed costs

High fixed costs don't cause you to lose revenue.

 

[JamieDimonsBalls]

High fixed costs don't cause you to lose revenue.

they also don’t allow you much flexibility when revenue dips. Quite odd for a CC processor to have such a high proportion of fixed costs.

 

[twenty02]

How many people that work for a tech/ services company in Seattle make less than $70k anyway?

 

[UncleMark]

they also don’t allow you much flexibility when revenue dips. Quite odd for a CC processor to have such a high proportion of fixed costs.

So the question should be why did they lose so much revenue rather than immediately blame the business's difficulties on their compensation policies.

 

[Marvin the Martian]

they also don’t allow you much flexibility when revenue dips. Quite odd for a CC processor to have such a high proportion of fixed costs.

They had flexibility, the employees accepted the pay cut.

 

[Mas-sa-suta]

The idea sounds great. ESOP'S are marketed as vehicles to develop equity, retain employees and improve profitability.
In today's dumb-downed world of instant gratification, ESOP's are nearly useless.

 

[Marvin the Martian]

It looks like Price's problems caught up to him.

CEO famed for higher pay advocacy exits after sexual assault allegations | CNN Business

Dan Price was the poster child for resisting corporate greed, making headlines in 2015 for setting a minimum $70,000 salary for all employees at the payments company he led — saying he cut his own salary as CEO by 90% to achieve it.

www.cnn.com

 

[Stuffshot]

Didn't want to hijack the other thread, but some interesting legal issues and allegations coming out against Mr. Price.

It seems his entire decision was selfish after all. He may be a genius, but also a sociopath.

www.bloomberg.com/features/2015-gravity-ceo-dan-price/

Wasn't he also in that last Avengers movie when all the surviving superheroes had personal problems?

 

[anon_mlxxvlbug9dpa]

It looks like Price's problems caught up to him.

CEO famed for higher pay advocacy exits after sexual assault allegations | CNN Business

Dan Price was the poster child for resisting corporate greed, making headlines in 2015 for setting a minimum $70,000 salary for all employees at the payments company he led — saying he cut his own salary as CEO by 90% to achieve it.

www.cnn.com

Shock. Another virtue signaler bites the dust.

 

[JamieDimonsBalls]

It looks like Price's problems caught up to him.

CEO famed for higher pay advocacy exits after sexual assault allegations | CNN Business

Dan Price was the poster child for resisting corporate greed, making headlines in 2015 for setting a minimum $70,000 salary for all employees at the payments company he led — saying he cut his own salary as CEO by 90% to achieve it.

www.cnn.com