https://www.huffpost.com/entry/dan-price-gravity-payments-cut-salary_n_60760cebe4b001befb6d8b9f https://meaww.com/what-is-dan-price...slashed-own-salary-revenue-tripled-in-6-years https://people.com/human-interest/c...since-he-gave-employees-70000-minimum-salary/ 6 years later and he has discredited all who claimed this venture would fail. Seems to me that many businesses could learn from this.
He had his whopping 185 employees take paycuts and got millions in paycheck protection loans to keep his company afloat in 2020. I am not sure that there is much to be learned from them. He also owns the company and therefore owes no fiduciary duties to investors, so it is really not a model for any major employers. https://www.idahostatesman.com/news/business/article244968805.html
First if you are going to offer up an article for proof, make sure it is one that doesn't need a subscription to read. Otherwise you have provided no proof. Secondly, the employees offered to take the pay cuts, AND all of the pay that was withheld for the period was paid back, so the company has done extremely well, for the employees to have effectively lost no money. As you stated he took out loans, not sought government subsidies and grants and other sources that would not have to be paid back. That's a hell of a lot better than a major corporation asking for government support because they "are too big to fail". Furthermore, their revenue tripled, not to mention doubling the customer counts AND reducing customer attrition! Please tell me, what investor would not be pleased with that? So what is not to model? And it doesn't necessarily have to be the $70k a year. If you break that down, that is an hourly wage of $33+/hour. Hell even going $20/hour would make a great difference.
First of all, the article I linked is not behind a paywall so no subscription is needed and secondly paycheck protection loans do not have to be paid back as long as they are used for the purposes applied for so they are a government subsidy. Revenue tripled but they could barely keep the doors open........sounds like the richer are getting richer in handing himself low tax dividends instead of higher tax "salary"
Interesting. When I accessed the link from my laptop this morning, there was something there that prevented me from seeing the article, asking me to subscribe, with no visible means of getting rid of it. Accessing from my phone I got the article. I'll have to try the lap top again. I'll peruse the article later. As I am doing this at a load stop, and won't have time to fully digest it. Then it's not a loan, and by not making clear that, you, and anyone else using the label, are being misleading. And while I can grant that you are simply using the words the originator used, it was still incumbent upon you to note that it was a loan in name and not in fact. Yiu are trying to conflate events into a single instance. The paradigm shift worked so well that it tripled revenue, and then the pandemic hit. Dan specifically notes that they lost over 55% of their income over night. And yet they still recovered. And employees got back all that they are given up for the period. Again, I'll look into this supposed loan/subsidy of the article later. But the fact that they got through this with no layoffs and no loss of staff says a lot. I know many businesses that had loans and such that still lost staff, because the money went to expenses other than pay.
So I have looked at the article, and then even looked up the Paycheck Protection Program loan mentioned in the article. Seems it is indeed a loan, subject to being paid back. There are, however, rules in place that would allow for repayment forgiveness. And that is key. There is no certainty that such forgiveness is granted, even if the conditions are met, AND one has to apply for such forgiveness. At this moment, we seem to be at a null point, as I have yet to see anything showing he paid back the loan, had it forgiven, or some combination of the two. I'm not sure what you expected to show in the article you linked. It pretty much praises Dan for correct action taken, and shows his actions kept everyone employed, and at no overall loss of pay, as well growing the business back from a drop that was not caused by any decision of his. Gravity Payments is a success story no matter how you look at it.
OK so I wasn't remembering quite right. It wasn't a paywall per se, but an ad wall. It wasn't allowing me to scroll through without turning off my ad blocker or subscribing, which as far as I am concerned is not much different from a paywall.
Uh Oh. Seattle CEO who made headlines for pay cut so workers could earn $70K resigns Dan Price, the CEO of credit card processing company Gravity Payments, resigned on Wednesday. Price made headlines in 2015 when he announced he was giving himself a drastic pay cut to help cover the cost of big raises for his employees. Earlier this year, Seattle prosecutors charged Price with misdemeanor assault and reckless driving, according to The Seattle Times. Prosecutors say Price tried to forcibly kiss a woman in his car then grabbed her throat when she refused him. He pleaded not guilty in May. The case remains ongoing.
I know several business owners in long-established very profitable businesses who choose to pay their employees more than they have to. And I'm aware of at least one case where the business was sold and the new owner immediately cut the salaries of many of the employees. The old owner probably knew it was likely to happen but didn't care. She would be gone and not be around for her long-time employees to get angry at her.
I'm loving this "and now, the rest of the story" about this guy. Social Media Was a C.E.O.’s Bullhorn, and How He Lured Women After Ms. Margis liked one of his Instagram posts in 2020, Mr. Price, who was 35, messaged her: “Happy Valentine’s Day beautiful!” Ms. Margis, who was 27, ignored the message initially but replied back early last year, after friends in a group chat once again shared one of his tweets. “You’re wonderful,” she wrote. Soon, they were talking regularly. Mr. Price visited her near San Diego and flew her to Seattle. But what started as a whirlwind courtship ended three months later with an accusation of rape. On Monday, the police in Palm Springs, Calif., said they had referred Ms. Margis’s case to local prosecutors, recommending a charge of rape of a drugged victim. Prosecutors in Seattle earlier this year charged Mr. Price with assault in another incident.
Which, again, has what to do with showing that a business model that actually pays employees a living wage or better, works and even creates incentives to work better?
