Dan Price of Gravity Payments is a 31-year-old CEO who made headlines in April after publicly stating he would bump all of his employees to a $70,000 minimum wage, while cutting his own $1 million per year salary to the same in the process.
At the time, the move heralded great public support from individuals tired of hearing stories about overpaid CEOs, as well as proponents of increasing the minimum wage nationwide.
Now, new reports from Fox News and the New York Times reveal that Price may have overreached quite a bit in his generosity.
The entrepreneur is reportedly “struggling to stay afloat,” he tells the Times, and he also admits that many of the criticisms he’s received are warranted.
“There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” he said.
First of all I told everyone this would happen when I first heard the story a while back for the following reasons.....
1) If every single employee makes the same wage as the boss why should they increase productivity for the boss? (It's not like there will be a wage incentive)
2) Since everyone makes the same wage as the CEO (Yes, I said makes, not earns) This in their minds makes them "Equal to the CEO" not subordinate to him. Thus, they might feel like they're the BOSS not him!
3) Then there's Overspending of the very funds (his own) that he would need on days like today to keep the company afloat!
Thoughts for him for the future!
Since this a case study in Business "Socialism" which almost always fails; he needs to return to Capitalism immediately before it's too late And I'm afraid it might be.
david conigliaro puts businesses on steroids!
Link: videos
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