As the wealth gap increases more and more everyday, seeing the 1% get exponentially wealthier while the rest of us chumps struggle to make ends meet, there are some mega-rich folk out there who do still care, and are actually putting their money where their mouth is.
Dan Price is the CEO of Gravity Payments, a Seattle-based credit-card payment processing firm, who started his company in 2004 at just 19 years old. He now earns nearly $1,000,000 a year in salary. After reading a study on the impact of income on emotional well-being, Price was moved and decided he wanted to give back to his 120-member staff by raising the minimum yearly salary for every employee to $70,000.
This includes all low-level clerks, customer service representatives and salespersons. The selfless CEO felt that by reducing his own salary to $70k and dipping into company profits over the next three years, he could make a big difference to the lives of his workforce. The current average salary at Gravity Payments is $45,000.
While Price is not looking to set any precedent for other CEO's to follow suit (though we certainly hope this inspires them), he is trying to do something about wage inequality and close the outrageous pay gap that exists today. Considering that the richest 1% of the world's population is projected to own more than 50% of the world's wealth by 2016, the Price is definitely right.