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Fox News Mocked This CEO For Raising His Employees’ Minimum Wage And Cutting His Own, He Rubs His Success In Their Face 6 Years Later
Interview With Author
If you want roaring success, you can’t afford to think and act like your peers. And entrepreneur Dan Price proved that. Having raised his employees’ minimum wage to 70k dollars 6 years ago after cutting his own CEO pay by a million dollars, Dan’s now reaping the rewards, both in terms of finances, worker job (and life!) satisfaction, and loyalty.
An experiment that many said would fail now has some critics considering that Dan’s approach may have merit. “Always invest in people,” Dan highlighted in his recent post on Twitter and I fully support this approach. However, it makes sense not just on an ethical level but on a financial one, too. Have a read through the entrepreneur’s summary of how the decision to massively increase his employees’ wages impacted the company overall and what it was like 6 years ago to weather the storm of criticism with media skeptics like Fox News at the forefront.
I had a quick chat with Dan and he said that he’s feeling happy about his team and their success at work. “I wish the critics would see that the issues most people out there face are systemic and we need to stop blaming people for the failures of the system,” he pointed out to Bored Panda that his critics have been focusing on the wrong issues.
In Dan’s opinion, increasing the minimum wage to 15 dollars is just the start of change in the US: laws must be passed to keep the people at the top from “using the system to eliminate competition.” He shared some of the things that he believes ought to change to improve the nation: “Healthcare access without the threat of financial ruin, early childhood care, care for seniors, higher taxes on those making the most and having the most (i.e. wealth tax), and we absolutely need to get money out of politics.” The entrepreneur opened up to Bored Panda that by proving that his way works and without having large companies follow suit, he’s shown that they “can’t or won’t fix these issues unless they are legally forced to do so.” Be sure to read on for our second interview with a financial expert and his insights into Dan’s decision to increase his employees’ wages.
More info: Twitter | Instagram
RELATED:
Dan Price, the CEO of Gravity Payments, celebrated 6 years of having cut his own pay by a million dollars to increase his employees’ wages
Image credits: danpriceseattle
Dan tweeted out a video where he shows just how wrong his critics, including Fox News, were
6 years ago today I raised my company’s min wage to $70k. Fox News called me a socialist whose employees would be on bread lines.
Since then our revenue tripled, we’re a Harvard Business School case study & our employees had a 10x boom in homes bought.
Always invest in people. pic.twitter.com/o7Ca7I4b7e
— Dan Price (@DanPriceSeattle) April 13, 2021
Here’s exactly how the decision to increase his employees’ pay impacted the company 6 years down the line
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Image credits: DanPriceSeattle
Sam Dogen, the founder of the Financial Samurai blog who has 13 years of experience in investment banking, gave Bored Panda his take on Dan’s decision to reduce his own pay to boost his employees’. “Employee loyalty is incredibly valuable and underrated. In order to create employee loyalty, not only must they get paid well, but they need to have ownership in the company,” Sam said. “Once you even have a small equity stake in the company, your attitude changes for the better. For example, you’ll probably work a little harder, say nicer things about your company outside of work, and pick up a piece of trash in the hallway.” You’ll find his other insights on Dan’s compensation model below.
The founder of the Financial Samurai blog, Sam, said that the main reasons why larger companies don’t follow in Dan’s footsteps is very simple: it comes down to greed and ego. “C-level executives want to make the most money possible before they move on. Secretly, many of these C-level executives know that can’t positively affect their company’s stock price to warrant their compensation. However, some C-level executives do accept low salaries or just token $1 salaries a year. They then get paid millions in stock options,” the financial expert explained to Bored Panda.
According to him, companies fear that they’ll be less cost-competitive if they raise the compensation that employees receive. “Further, there is fear some employees who were making less may not work as hard, thereby bringing down productivity,” he said.
“The approach will likely never become mainstream because competition is too fierce,” Sam warned us that, realistically, we probably won’t see Dan’s approach spread. “However, incorporating equity as part of an employee’s compensation structure is important for company loyalty.”
One of the most eye-opening impacts the change Dan drove forward had was how they faced the Covid-19 pandemic. “At the start of the pandemic, we lost 55% of our revenue overnight. Our employees were so invested they volunteered to take temporary pay cuts to prevent any layoffs. We weathered the storm, paid everyone back, and are now giving out raises,” Dan writes.
In other words, his investment in his employees’ quality of life made sure that ‘Gravity Payments’ was kept afloat in difficult times. Trust begets trust, loyalty begets more loyalty.
Dan listed how besides their revenue tripling, they also increased the number of employees who, as it turns out, now had enough financial stability to start having children, paying off debt, and buying homes.
What’s more, the gap between the highest and lowest-earning employees shrunk massively. Dan admitted that he was “an awful CEO” before, but now he’s inspiring other businesses to follow in his footsteps. However, Dan pointed out that it’s mostly small businesses that do this while large corporations aren’t biting (yet).
More money might not change much when you’re already well-off, but it has a huge impact when you’re forced to work a second job just to make ends meet. Or, as Dan put it, “Money buys happiness when it gets you out of poverty but not when it gets you from well-off to very well-off.” He added that he doesn’t miss the millionaire lifestyle and doesn’t regret having cut his pay by such a huge amount.
Some people were curious to find out how Dan’s lifestyle changed
Image credits: MnemonicSyntax
Image credits: DanPriceSeattle
Image credits: RachelNStephens
Dan believes that what he did made a lot of business owners uncomfortable
Image credits: DanPriceSeattle
Meanwhile, others were interested to find out what businesses, if any, have followed in his footsteps
Image credits: danpandrea
Image credits: DanPriceSeattle
Image credits: Tortoisehead38
The entrepreneur revealed that some employees weren’t happy with the changes and left, however, things still turned out well
Image credits: DanPriceSeattle
Some Twitter users pointed out that what Dan’s been doing is a great example of doing business well
Image credits: Jrdwht
Image credits: DanPriceSeattle
Others shared that businesses don’t have to copy Dan’s decisions perfectly, but should instead aim to follow the spirit of the changes he made
Image credits: deep_state_ceo
Image credits: DanPriceSeattle
And here’s how some other people have been reacting to Dan’s recent Twitter post
Image credits: Floridaman2025
Image credits: GrantOden2
Image credits: ibrahimphee
Image credits: Bourne57998507
Image credits: ConsultingKimW
Image credits: baldwin_fm
Image credits: NivUltra
Image credits: yourdesignagent
Image credits: TommyPistol
Image credits: TheAmericanPuls
Image credits: ViciousCrack3r
Image credits: MiaDfins
Image credits: HyperrrMouse
What do you think of the changes that entrepreneur Dan made to his company? Do you think the results speak for themselves? Do you think your quality of life would improve much if your wage was increased to at least 70k dollars per year? Share your thoughts below. Oh, and you’ll find Bored Panda’s recent articles about Dan’s views on businesses and the economy right over here, right here, and here.
What do you think ?
tuzdayschild 3 years ago
My question: Why is Fox News opposed to people getting a better wage? Just kidding, I know the answer. Some people truly want others to stay down so they can feel superior.
Siah avis 3 years ago
You need poor people to be a filthy rich person and they know if the tides turn and people demand better wager all round, they will be in trouble. They're just a trumpet for the republicans who are just puppets of the big corps.
Load More Replies...
Hans 3 years ago
Sorry to be the economist here too much, but by having massive social media attention this guy is mainly leading a very effective marketing strategy for his company. He gets tons and tons of free advertising. Besides: "socialist" is not an insult, even though people who listen to Fox news think it is. If you study the World Happiness Report report, you will see that countries that are following socialist ideas but in a non authoritarian way have by far the happiest citizens.
Nikki Sevven 3 years ago
(1) It's not socialism when a private company decides to pay its employees what they're worth. (2) Large corporations in the US typically underpay their employees, to the extent that many are forced to rely on government assistance to survive. THAT is socialism...for the corporations, not for the people.
kjorn 3 years ago
yeah... because happy employee don't usually leave! they stay! they have their company at heart! and if they make more money that's mean they have more money to spent! they buy car, house, go out, buy gift... this is economy... not just some greedy guy who keep his money in a bank and take a bath in it like Uncle Scrooge.
Jace 3 years ago
These Fox people are nutcases. Cultist sociopaths. How the hell does a guy giving his employees a great wage get referred to as "socialism"????WTF??? They're a dogdamned caricature of themselves. No matter how far right these fuckos lean, their base just goes right along with them, further down the spiral of BONKERS INSANITY. At this point, the insanity is so concentrated (because the sane ones left, and the marginal ones went batshit) that it is literally a cult.
mac 3 years ago
This is why I am against increasing the minimum wage. Because it's not about a minimum wage. It's about a living wage. And like Dan said not every company can do EXACTLY what he did BUT they should do what they can and follow his example. Invest in your employees and the rest will fall into place. That evil greed monster is SO entrenched in the corporate world that I fear it will never be defeated. How many homes and private jets do CEOs really need? Tell me Jeff Bezos, how many?!?!?!?!?
Iapetos 3 years ago
So many that he can destroy all lives on this planet.
Load More Replies... Bobert Robertson 3 years ago (edited)
"6 years ago I increased my employees' minimum wage to 70k. I also stopped cutting my hair to mark the occasion"..........on a serious note, this dude's amazing
Carol Emory 3 years ago
Had to do a double take since, at first, I thought I was looking at Dave Grohl
Load More Replies...
Random Anon 3 years ago
Seeing Fox News go about demonizing anything socialist including the Scandinavian countries really did nothing but convince me it's a garbage network with gutter journalism.
marianne eliza 3 years ago
I've been advocating that the highest paid exec should not make more than 10X the lowest paid employee. But I like his 4X better.
Duchess Raven Waves 3 years ago
Look at his face. Cmon guys. Right wrong or otherwise the man did something so unlike his peers that it totally gagged them. His heart was in the right place. He saw a gap and closed it. Robin Hood in the flesh. There are no facts here only opinions.
Pittsburgh rare 3 years ago
I swear I almost teared up seeing someone doing something which is pure common sense AT LAST.
Kelli from Fitness Blender 3 years ago
This is absolutely amazing. Not enough employers respect their employers like this. Good Job!!
Jordan Smith 3 years ago
My dad's company, I'm pretty sure, did something like this. From what I understand, everyone is making a pretty good amount of money. My dad makes around 90000 per year, and I think everyone else makes around the same. And he isnt at a big position in the company, he's just programmer. I dont think too many people quit from the company, so, I think it's working. And the best part is nobody got laid off during covid.
MrTir 3 years ago
What is this absolutely ludicrous scarecrow of socialism back there in United States? I mean all those "experts" on Fox starting to call a private company socialist, which is totally absurd to the bone; Don't they have elementary basics of professionalism, i.e. to have context, defined thoughts and etiquette? We need somebody there to knock the door open and shout: Stop, guys, we spread hatred against Communism to unite people, now we're going too far, for no reason.
Mshauri Mazuri 3 years ago (edited)
Dan Price just knows what to do.I bet you wish Jeff Bezos will do the same. To get or not to get fame, if it resulted in positive that will make your employee's life better, do it.
Chenandoa 3 years ago
Yes, getting out of poverty does provide some happiness. I personally get frustrated because I cannot afford an art supply order. I also cannot afford fabric to experiment with designing clothing for myself (I struggle to find long sleeved shirts, and jeans).
Slune 3 years ago
In what part of the world are you living? I guess you are young, so are not able get any support from a foundation or government program? Fashion is a very hard business to start, but I hope things getting better soon for you!!
Load More Replies...
K Witmer 3 years ago
I own a small swimming pool company. Biden is even a customer of mine. We have 3 trucks and 9 employees. They all make 22$ an hour. They are also compensated in the winter when they collect unemployment for 3 mths. We give bonuses as well. My husband and I live very comfortably we were able to purchase two Tesla's and build a home in the 20 yrs we've been in business. There is no excuse for corporate fat lying pigs to not pay their employees a living wage. I'm a proof of this.
K Witmer 3 years ago
We also pay for their health insurance dental and vision included their family's are covered as well. There is no excuse there just isn't!
Load More Replies...
Jill 3 years ago
I sometimes think that politics has become like sports. You choose a side and cheer for them. If they win you're happy and if they lose you badmouth both yours and the other team. No wonder people dont believe in politicians anymore when they flip flop every other year depending on whose team is winning.
youtube viewing only yea 3 years ago
I knew of this guy in Nas Talks the podcast... What a humane being 👏👏👏👏👏
Tom Susala 3 years ago
IMHO there aren't enough expletives to help describe what an immense waste of broadcast bandwidth, sponsorship dollars, and time Fox News is. First, they don't even know the difference between socialism and communism. second - when they get called on the carpet about their slipshod reporting practices, they say "We're not a news channel, we're an ENTERTAINMENT channel." Socialism is not a bad thing. St. Jude's Hospital in Memphis is socialist in theory. If your child is sick with a catastrophic illness and you can't afford treatment, they WILL NOT turn you away. Tucker Carlson would probably say something like, "So, the kid is sick, make the parents work in the Hospital Kitchen to pay off the child's medical bills." I know I'm going off on a tangent but nothing would make me happier than to see Fox "NEWS" shut down. Heck, 35-year-old Thigh-master commercials have more socially redeeming content than Fox "NEWS'."
Bill Taylor 3 years ago (edited)
Conservative voters working minimum wage at Walmart, are like "hooray for billionaires" CEO of a company decides to properly compensate his employees, conservative voters, "boo"...
Oliver Seitz 3 years ago
Ok, going into a clown show and presenting a serious business idea isn't fair. That lunatics don't even understand the basics. Propaganda, lies and stupid opinions will never fit to reality, so FOX just calls it socialism and laughs...
Sardonic Scribe 3 years ago
My CEO makes over $4M yearly, and I, as a senior writer, make $50K (minus taxes) and support an adult dependent. They refuse to give cost of living raises and merit increases before an allotted time. At 43 I'm now thinking that home ownership is something I'll never attain. We need more people like Dan in this world.
Alexandra Nara 3 years ago (edited)
No socialism here: Money employees have left ( after necessaries like rent, groceries etc) is money they reinvest in capitalism. Money distribution would help to keep more companies "alive" in crisis, more people to stay employed and maybe better payable healthcare conditions at the end. It's no socialism - it is a prevention of " capitalism will eat itself" Because none of the rich stakeholders and CEOs will distribute/ reinvest money back to economy like a dozen employees would do with the same amount.
Suzanne Haigh 3 years ago
What do Americans mean when they say 'socialism'? Just read that most Americans are intelligent, do not think so!
kjorn 3 years ago
american are so f*****g lunatics!!! Socialism is bad? NOT ONE FORM OF GOVERNMENT IS BAD... ONLY THOSE WHO ABUSED IT!! You can have a dictator who treat his citizen like human being, give them education, healtcare, jobs and nobody would care! but you can have a moron, liar, mysosygn, bully, in a democratic country and everything would go to s**t and everyone complain.
Aria Whitaker 3 years ago (edited)
*Sigh* Americans are not one person, kjorn. Are the Americans who are praising him and those actually working for him also "lunatics"? Are those of us who are fighting tooth and nail for progressive policies and laws also "lunatics"? Hell, the CEO himself is American...is he also a "lunatic"? Jesus, you all please stop with this American-directed bigotry. It is getting old and tired. It is not cute when Americans do it, or when it is being done TO us. Painting with a wide brush does nothing but get you messy.
Load More Replies...
Nathan Jones 3 years ago
Expanding from 130 employees to 200 is not a head count growth of 70%, it's 53.8%. He likes to pad his stats.
tuzdayschild 3 years ago
My question: Why is Fox News opposed to people getting a better wage? Just kidding, I know the answer. Some people truly want others to stay down so they can feel superior.
Siah avis 3 years ago
You need poor people to be a filthy rich person and they know if the tides turn and people demand better wager all round, they will be in trouble. They're just a trumpet for the republicans who are just puppets of the big corps.
Load More Replies... Hans 3 years ago
Sorry to be the economist here too much, but by having massive social media attention this guy is mainly leading a very effective marketing strategy for his company. He gets tons and tons of free advertising. Besides: "socialist" is not an insult, even though people who listen to Fox news think it is. If you study the World Happiness Report report, you will see that countries that are following socialist ideas but in a non authoritarian way have by far the happiest citizens.
Nikki Sevven 3 years ago
(1) It's not socialism when a private company decides to pay its employees what they're worth. (2) Large corporations in the US typically underpay their employees, to the extent that many are forced to rely on government assistance to survive. THAT is socialism...for the corporations, not for the people.
kjorn 3 years ago
yeah... because happy employee don't usually leave! they stay! they have their company at heart! and if they make more money that's mean they have more money to spent! they buy car, house, go out, buy gift... this is economy... not just some greedy guy who keep his money in a bank and take a bath in it like Uncle Scrooge.
Jace 3 years ago
These Fox people are nutcases. Cultist sociopaths. How the hell does a guy giving his employees a great wage get referred to as "socialism"????WTF??? They're a dogdamned caricature of themselves. No matter how far right these fuckos lean, their base just goes right along with them, further down the spiral of BONKERS INSANITY. At this point, the insanity is so concentrated (because the sane ones left, and the marginal ones went batshit) that it is literally a cult.
mac 3 years ago
This is why I am against increasing the minimum wage. Because it's not about a minimum wage. It's about a living wage. And like Dan said not every company can do EXACTLY what he did BUT they should do what they can and follow his example. Invest in your employees and the rest will fall into place. That evil greed monster is SO entrenched in the corporate world that I fear it will never be defeated. How many homes and private jets do CEOs really need? Tell me Jeff Bezos, how many?!?!?!?!?
Iapetos 3 years ago
So many that he can destroy all lives on this planet.
Load More Replies... Bobert Robertson 3 years ago (edited)
"6 years ago I increased my employees' minimum wage to 70k. I also stopped cutting my hair to mark the occasion"..........on a serious note, this dude's amazing
Carol Emory 3 years ago
Had to do a double take since, at first, I thought I was looking at Dave Grohl
Load More Replies... Random Anon 3 years ago
Seeing Fox News go about demonizing anything socialist including the Scandinavian countries really did nothing but convince me it's a garbage network with gutter journalism.
marianne eliza 3 years ago
I've been advocating that the highest paid exec should not make more than 10X the lowest paid employee. But I like his 4X better.
Duchess Raven Waves 3 years ago
Look at his face. Cmon guys. Right wrong or otherwise the man did something so unlike his peers that it totally gagged them. His heart was in the right place. He saw a gap and closed it. Robin Hood in the flesh. There are no facts here only opinions.
Pittsburgh rare 3 years ago
I swear I almost teared up seeing someone doing something which is pure common sense AT LAST.
Kelli from Fitness Blender 3 years ago
This is absolutely amazing. Not enough employers respect their employers like this. Good Job!!
Jordan Smith 3 years ago
My dad's company, I'm pretty sure, did something like this. From what I understand, everyone is making a pretty good amount of money. My dad makes around 90000 per year, and I think everyone else makes around the same. And he isnt at a big position in the company, he's just programmer. I dont think too many people quit from the company, so, I think it's working. And the best part is nobody got laid off during covid.
MrTir 3 years ago
What is this absolutely ludicrous scarecrow of socialism back there in United States? I mean all those "experts" on Fox starting to call a private company socialist, which is totally absurd to the bone; Don't they have elementary basics of professionalism, i.e. to have context, defined thoughts and etiquette? We need somebody there to knock the door open and shout: Stop, guys, we spread hatred against Communism to unite people, now we're going too far, for no reason.
Mshauri Mazuri 3 years ago (edited)
Dan Price just knows what to do.I bet you wish Jeff Bezos will do the same. To get or not to get fame, if it resulted in positive that will make your employee's life better, do it.
Chenandoa 3 years ago
Yes, getting out of poverty does provide some happiness. I personally get frustrated because I cannot afford an art supply order. I also cannot afford fabric to experiment with designing clothing for myself (I struggle to find long sleeved shirts, and jeans).
Slune 3 years ago
In what part of the world are you living? I guess you are young, so are not able get any support from a foundation or government program? Fashion is a very hard business to start, but I hope things getting better soon for you!!
Load More Replies... K Witmer 3 years ago
I own a small swimming pool company. Biden is even a customer of mine. We have 3 trucks and 9 employees. They all make 22$ an hour. They are also compensated in the winter when they collect unemployment for 3 mths. We give bonuses as well. My husband and I live very comfortably we were able to purchase two Tesla's and build a home in the 20 yrs we've been in business. There is no excuse for corporate fat lying pigs to not pay their employees a living wage. I'm a proof of this.
K Witmer 3 years ago
We also pay for their health insurance dental and vision included their family's are covered as well. There is no excuse there just isn't!
Load More Replies... Jill 3 years ago
I sometimes think that politics has become like sports. You choose a side and cheer for them. If they win you're happy and if they lose you badmouth both yours and the other team. No wonder people dont believe in politicians anymore when they flip flop every other year depending on whose team is winning.
youtube viewing only yea 3 years ago
I knew of this guy in Nas Talks the podcast... What a humane being 👏👏👏👏👏
Tom Susala 3 years ago
IMHO there aren't enough expletives to help describe what an immense waste of broadcast bandwidth, sponsorship dollars, and time Fox News is. First, they don't even know the difference between socialism and communism. second - when they get called on the carpet about their slipshod reporting practices, they say "We're not a news channel, we're an ENTERTAINMENT channel." Socialism is not a bad thing. St. Jude's Hospital in Memphis is socialist in theory. If your child is sick with a catastrophic illness and you can't afford treatment, they WILL NOT turn you away. Tucker Carlson would probably say something like, "So, the kid is sick, make the parents work in the Hospital Kitchen to pay off the child's medical bills." I know I'm going off on a tangent but nothing would make me happier than to see Fox "NEWS" shut down. Heck, 35-year-old Thigh-master commercials have more socially redeeming content than Fox "NEWS'."
Bill Taylor 3 years ago (edited)
Conservative voters working minimum wage at Walmart, are like "hooray for billionaires" CEO of a company decides to properly compensate his employees, conservative voters, "boo"...
Oliver Seitz 3 years ago
Ok, going into a clown show and presenting a serious business idea isn't fair. That lunatics don't even understand the basics. Propaganda, lies and stupid opinions will never fit to reality, so FOX just calls it socialism and laughs...
Sardonic Scribe 3 years ago
My CEO makes over $4M yearly, and I, as a senior writer, make $50K (minus taxes) and support an adult dependent. They refuse to give cost of living raises and merit increases before an allotted time. At 43 I'm now thinking that home ownership is something I'll never attain. We need more people like Dan in this world.
Alexandra Nara 3 years ago (edited)
No socialism here: Money employees have left ( after necessaries like rent, groceries etc) is money they reinvest in capitalism. Money distribution would help to keep more companies "alive" in crisis, more people to stay employed and maybe better payable healthcare conditions at the end. It's no socialism - it is a prevention of " capitalism will eat itself" Because none of the rich stakeholders and CEOs will distribute/ reinvest money back to economy like a dozen employees would do with the same amount.
Suzanne Haigh 3 years ago
What do Americans mean when they say 'socialism'? Just read that most Americans are intelligent, do not think so!
kjorn 3 years ago
american are so f*****g lunatics!!! Socialism is bad? NOT ONE FORM OF GOVERNMENT IS BAD... ONLY THOSE WHO ABUSED IT!! You can have a dictator who treat his citizen like human being, give them education, healtcare, jobs and nobody would care! but you can have a moron, liar, mysosygn, bully, in a democratic country and everything would go to s**t and everyone complain.
Aria Whitaker 3 years ago (edited)
*Sigh* Americans are not one person, kjorn. Are the Americans who are praising him and those actually working for him also "lunatics"? Are those of us who are fighting tooth and nail for progressive policies and laws also "lunatics"? Hell, the CEO himself is American...is he also a "lunatic"? Jesus, you all please stop with this American-directed bigotry. It is getting old and tired. It is not cute when Americans do it, or when it is being done TO us. Painting with a wide brush does nothing but get you messy.
Load More Replies... Nathan Jones 3 years ago
Expanding from 130 employees to 200 is not a head count growth of 70%, it's 53.8%. He likes to pad his stats.
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