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Title: CEO Raises Salaries to $70K for EVERY Employee, Now has to Rent Out his Own Home to Make Ends Meet
Source:
The Young Conservative
URL Source: [None]
Published: Aug 2, 2015
Author: John S. Roberts
Post Date: 2015-08-02 10:40:45 by GrandIsland
Keywords: None
Views: 9183
Comments: 63
Back in April we told you about Dan Price, CEO of Gravity Payments, who said he would pay every single one of his employees $70,000 annually. Every single one, from the lowest skilled workers on up. Now, as expected, Price has fallen on hard times financially, even having to rent out his own home. Employees who work for Gravity are now leaving the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.” This was always going to be the outcome. If everyone hits the jackpot, does anybody really win the lottery? When Dan Price, founder and CEO of the Seattle-based credit-card-payment processing firm Gravity Payments, announced he was raising the company’s minimum salary to $70,000 a year, he was met with overwhelming enthusiasm. “Everyone start[ed] screaming and cheering and just going crazy,” Price told Business Insider shortly after he broke the news in April. But in the weeks since then, it’s become clear that not everyone is equally pleased. Among the critics? Some of Price’s own employees. Maisey McMaster — once a big supporter of the plan — is one of the employees that quit. McMaster, 26, joined the company five years ago, eventually working her way up to financial manager. She put in long hours that “left little time for her husband and extended family,” The Times says, but she loved the “special culture” of the place. But while she was initially on board, helping to calculate whether the company could afford to raise salaries so drastically (the plan is a minimum of $70,000 over the course of three years), McMaster later began to have doubts. “He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” she told The Times. A fairer plan, she told the paper, would give newer employees smaller increases, along with the chance to earn a more substantial raise with more experience. Back in April we told you about Dan Price, CEO of Gravity Payments, who said he would pay every single one of his employees $70,000 annually. Every single one, from the lowest skilled workers on up. Now, as expected, Price has fallen on hard times financially, even having to rent out his own home. Employees who work for Gravity are now leaving the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.” This was always going to be the outcome. If everyone hits the jackpot, does anybody really win the lottery? From BI: When Dan Price, founder and CEO of the Seattle-based credit-card-payment processing firm Gravity Payments, announced he was raising the company’s minimum salary to $70,000 a year, he was met with overwhelming enthusiasm. “Everyone start[ed] screaming and cheering and just going crazy,” Price told Business Insider shortly after he broke the news in April. But in the weeks since then, it’s become clear that not everyone is equally pleased. Among the critics? Some of Price’s own employees. Maisey McMaster — once a big supporter of the plan — is one of the employees that quit. McMaster, 26, joined the company five years ago, eventually working her way up to financial manager. She put in long hours that “left little time for her husband and extended family,” The Times says, but she loved the “special culture” of the place. But while she was initially on board, helping to calculate whether the company could afford to raise salaries so drastically (the plan is a minimum of $70,000 over the course of three years), McMaster later began to have doubts. “He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” she told The Times. A fairer plan, she told the paper, would give newer employees smaller increases, along with the chance to earn a more substantial raise with more experience. From Fox News: Dan Price, 31, tells the New York Times that things have gotten so bad he’s been forced to rent out his house. “I’m working as hard as I ever worked to make it work,” he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. “I’m renting out my house right now to try and make ends meet myself.” The Times article said Price’s decision ended up costing him a few customers and two of his “most valued” employees, who quit after newer employees ended up with bigger salary hikes than older ones. Grant Moran, 29, also quit, saying the new pay-scale was disconcerting “Now the people who were just clocking in and out were making the same as me,” he told the paper. “It shackles high performers to less motivated team members.” The Times said customers who left were dismayed at what Price did, viewing it as a political statement. Others left fearful Gravity would soon hike fees to pay for salary increases. Brian Canlis, co-owner of a family restaurant, already worried about how to deal with Seattle’s new minimum wage, told Price the pay raise at Gravity “makes it harder for the rest of us.” And to think, all of this came about within a few short months. Liberal logic, for ya. One man with good intentions loses so much because he doesn’t understand how economics work. Socialism: We all fail together! Poster Comment: Grant Moran, 29, also quit, saying the new pay-scale was disconcerting “Now the people who were just clocking in and out were making the same as me,” he told the paper. “It shackles high performers to less motivated team members.” SOCIALISTIC INCOME EQUALITY WILL DO THIS EVERY TIME... WE ARE NOT EQUAL.
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#23. To: misterwhite (#19)
That wasn't my fault so I feel no obligation to fix it. Your statement tells me you don't know shit. There were never jobs in residential areas except for like grocery jobs, etc. People in the "inner city" would commute to work on the train or bus. They still do but rent is high these days even for inner cities. Harlem rent, for example, starts at 1,000 a month for example and he is white - moving into a former black part of town because rents are still cheaper there but it still blows a hole in his budget.
And I recall when you could make ends meet on minimum wage. I did it while working through college. So did a lot of other people. TC is correct - this idea that kids are being employed after school or summer jobs on minimum wage like we still live in Mayberry times is long dead. I don't get why this still pops up.
Republicans?
One idea that I like is for city govt to give up land for a construction company like Trump to build low cost housing - high rent mixed with middle and low rent maybe? Studies show mixed classes produce stable communities - and allow the company to rent and or sell condos and rent apts that will have fixed prices - say for 10 years. This way no taxes are raised and you add value to unused land. Better spent then building sports stadiums, etc.
Look, the point you are trying to avoid via semantics, is a socialistic IDEAL (like income equality) DOESNT WORK, whether it's done as a government OR IF A PRIVATE BUSINESS operates under the same bullshit ideologies. Try and keep up with my conversations. Shall I type slower for you? I'm the infidel... Allah warned you about. كافر المسلح
Neither job is a skilled tradesman job. Ever tried to explain that to someone that puts up drywall? n any case, cities that have a high cost in housing should adopt socialist measures and build low cost community housing that will allow minimum wage workers to afford care. ROFLMAO! "Socialism" described as being "low cost"! Good one,comrade! Why is democracy held in such high esteem when it’s the enemy of the minority and makes all rights relative to the dictates of the majority? (Ron Paul,2012)
$5 says he's never done any "rocking" before, especially ceilings... That hasn't been true for a long time. Especially in recent years where illegals are grabbing up 70% of the minimum wage jobs, possibly more. Sounds like you guys are willing to accept these changes (for the worse) to our country instead of fixing the real problem(s)??? We haven't accepted it. We're just mentioning the news reports. I know I recall Drudge posting a story about the illegals taking the bulk of the summer jobs away from the teens. Then there are the tourist spots mostly along the coasts where we often import foreign teenagers to work resorts and beach concession stands and so on. They allow in tens of thousands of foreigners to do this work. So it isn't just illegals, it's also foreigners with a legal job. Probably some of them then overstay their visa as we do know that a large portion of the "illegals" are people who overstayed a lawful student visa or work visa.
Ever tried to explain that to someone that puts up drywall? That's why socialist should never be allowed in government! If I had a choice of sweeping floors, flipping burgers, drywaller or roofer for the same or close to the same pay it would be flipping burgers! I have worked around drywallers and I have roofed before and it's not a job a sane person chooses. You choose it for the pay.
It is not dead. All of my kids at the proper age had jobs. Not just during the summer but during the school year too. They also always have the opportunithy to do work for me. Which they did since they were little.
I got my first job in 74 working for $1.90 per hour which was minimum wage at that time, I was a Junior in High School. There is no way that job would have let me move out and be on my own unless I lived in a cardboard box. Now when I got a job working for a refuse company (making 3 times minimum wage) then I could have moved out on my own. Instead I decided to go into the military and learn a real skill and be able to get real jobs and have never looked back. IIRC this is what is called "Starting at the bottom and working your way up", you know what most Americans used to pride themselves for doing?? (Not anymore I would say). I'm dumbfounded as to what the reasoning is nowadays for not traveling the route I traveled to become a responsible human being??????? (Laziness, believing the Leftard meme, stupidity)??????? Since I now have a good family, (2 and 4 legged) Grandchildren, cars, boat, and house/property worth right at $300K I don't consider that as wasting my life, some might but I don't... The ones that do are what's wrong with this country, and they know it just won't admit it!!! The Russians and Czhecks etc that work at the resorts are interesting people to talk to. I think they hire them for lifeguards because they can't quit. Unless they want to go home. I do kind of get irritated sometimes when some foreigner is blowing the whistle telling me to come closer to shore.
If you would be so kind as to inform me "which politicians" want to do the right thing for this country instead of looking out for their own wallet then we'll both know... But I have a sneaking suspicion your answer will make me laugh!!! bwaawhahahahahahahahahahahahhahahahahahahahah That's a good one. You a responsible person. lol. Just kiddin. :) Aren't you the one who used to drive through puddles when it was raining to splash old ladies? What was that you wiped on that window?
Cruz, Trump, Jindal. That was an easy one.
Sounds like a whole lot of changes need to be made to put things right, like getting rid of all the illegals/foreigners for a start. Raising minimum wage will only entice more of them to come here and ruin it for everybody else. ROFLMAO! "Socialism" described as being "low cost"! Good one,comrade! I call it socialism to tweak you guys. The proposals I have read and liked have to do with cities handing over land they own (so I guess that is socialism) and giving it away to a developer with the condition they produce housing that will be sold or rented at predetermined rates. Bloomberg, the past billionaire mayor of New York wanted to do something like that. The housing is built by a private contractor and since they got the land for free they can charge less money for rent and sales costs if a condo or co-op. Like it or not, the majority of workers in this country live in teh suburbs and commute to the city and many are on the road for 2 to 3 hours one way every day - all because they can't afford to live in the city limits near their jobs. If I was a mayor I would want to make it possible these workers live in the city where they can be taxed and where they can live and spend their money on the local economy. After 5pm many cities become ghost towns.
I am no longer a registered Republican and belong to no party. I can't vote in the primaries in my state (in some states independents can) but if Trump makes it I will vote for him.
I think 2 things have distorted wages. Illegal aliens and socialist in government. Illegal aliens bring down wages and benefits bellow market levels causing employees to work for less. Government raises wages and benefits beyond market levels ability to coop.
Running them over would be better, would lower your and my taxes!! :) LOL... That wasn't me that was a semi driver who completely soaked a HS kid in his Beavercreek letter jacket that was walking alongside the road, must have been about 1980 or so. There used to be a low spot right across from Krogers on Dayton-Xenia and it would hold a thousand gallons or so of rainwater in it for days. The truck went thru it doing about 30MPH and the poor kid completely disappeared in that wall of water, never laughed so hard in my life. I'm laughing...
I'm laughing...
The legal summer resort employment racket is a special case, I think. I saw some TV story about it years back. As I recall it, the numbers were in the hundreds of thousands. These kids have nowhere to go so they can't just quit their job like American kids can. They're less likely to get in trouble entirely as they don't hire anyone overseas with a criminal record or a drug record. Usually it's students with a good behavior record in school, no arrests, no drug history, and no local bad influences here in America that they are connected with. They're just here to work. As I understand it, they sign an employment contract. So, even if they are paid minimum wage, they get stuck with having the cost of housing/food deducted from their wages which can allow a savvy resort operator to recoup some of those wage costs by overcharging these temporary foreign employees on rents for housing. They can also house them inland from the resorts and bus them in/out so they don't have to give up high-dollar resort area real estate and can just keep them in a much cheaper inland location. I've always wondered just how many of these ended up overstaying their summer work visa, just like all the student visas that get overstayed. There are almost as many illegals who just overstayed their visa as there are of actual illegal border crossers. I don't mind the summer employment racket that much, provided they don't exploit these kids or leave locals without any summer jobs. If a foreign kid comes here and has a good work record and returned home at the end, they should move up on the list of who we are admitting as legal immigrants.
NOT a bet I am going to be taking. It seems obvious to me he is an academic with nothing but theory and no actual experience at anything but being politically correct and passing tests. Why is democracy held in such high esteem when it’s the enemy of the minority and makes all rights relative to the dictates of the majority? (Ron Paul,2012)
ROFLMAO! All theory,no experience. In the REAL world,the way those schemes always work out is that the contracts ALWAYS go out to someone politically connected (like Trump,for example)in exchange for kickbacks,and then the projects are delayed due to rising costs and the payouts get upped in order for the politicians to brag about finishing them. Everybody knows going in that unless the contractor is black or some other minority including a member of the majority female population,the bid is so low it would be impossible to complete for the stated budget,and that "adjustments will be made down the road". In the case of AA no-bid government contracts,the sky is the roof. I know of a local black guy that got the contract to pave a new 4 lany highway going through this area,and he didn't even own a dump truck and had not only never worked any paving jobs before,but had never been known to work ANY jobs other then pimping and running an illegal gaming house for gamblers he sold moonshine and pizza's to. After getting the contract the first thing he did was "sub it out" to probably the largest paving company in the state,and a company with Dim Party connections going back to the 30's. He got enough cash out of that one to buy a dump truck,and then they hired him to use the truck to haul gravel,asphalt,and dirt. Or more correctly they hired one of his sons,because he had no intention of working. He also managed to find 3 white whores in their late teens or early 20's to work in his nop join/gambling den house,and that halped push his income up considerably,too. In fact,he made so much money out of this he just disappeared about 2 years later and nobody will admit to knowing where he went. I may be wrong,but I suspect back child care payments had a lot to do with that. Last I heard,he had over a dozen children with different women. Why is democracy held in such high esteem when it’s the enemy of the minority and makes all rights relative to the dictates of the majority? (Ron Paul,2012)
It does not matter - the cost is borne by the real estate developer. The city does not pay for anything regarding construction. Since they don't get govt money the incentive is to build ontime and onbudget.
I think many of us predicted this to happen. Although I think TC said the owner would eventually sell the company and live comfortably off the sale. Probably what will happen once he realizes his comfort level will not be satisfied on $70k per yr. For the law was given by Moses, but grace and truth came by Jesus Christ.---John 1:17
You really do believe that,don't you? Not only that,but it's not going to cost anybody anything,and all the workers will get free rides to work on Unicorns. Why is democracy held in such high esteem when it’s the enemy of the minority and makes all rights relative to the dictates of the majority? (Ron Paul,2012)
Not only that,but it's not going to cost anybody anything,and all the workers will get free rides to work on Unicorns. Yes, because the real estate developer has a fixed income from the apts. They take in a revenue. There is a profit incentive based on a guaranteed income.
The NY Slimes editorial in 1984 called for a min wage of $0.0
Quis custodiet ipsos custodes?
- better yet - help them acquire the skills needed to earn more on their own. I wholeheartedly agree!!
Good OP ED.
For the law was given by Moses, but grace and truth came by Jesus Christ.---John 1:17
Can't make this stuff up. But after all -- it *wuz* 1984. And The Gipper was President. The Slimes editorial board has been to the left of Pravda for what -- the last 10-15 years?
Neither job is a skilled tradesman job. Huh?? You ever do drywall??
True. Incredibly so. THAT memory hurts. Only because it underscores the current degree of inflation.
Now you know better than to ask that question, the only things he knows how to do involves a computer and a bag of Cheetos... Hmmmm, let me guess you managed to get yourself suspended again??
There used to be jobs in the inner cities -- before gangs, guns, drugs, arson, murder, rape and assault drove them out.
#24. To: TooConservative, CZ82 (#22)
inimum wage jobs are starter jobs for teenagers that are living at home with Mommy and Daddy. That hasn't been true for a long time. Especially in recent years where illegals are grabbing up 70% of the minimum wage jobs, possibly more.
#25. To: CZ82 (#21)
TA again if the stupid bastards you vote for weren't in office this country wouldn't have that problem now would it??
#26. To: TooConservative (#22)
#27. To: Pericles (#14)
This is not socialism if a private business does this on their own.
#28. To: Pericles (#16)
Sure. Why not dump your $15/hour job putting up dry wall and just take $15/hour to flip burgers instead?
#29. To: sneakypete (#28)
Ever tried to explain that to someone that puts up drywall?
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#30. To: TooConservative, Pericles (#22)
TC is correct - this idea that kids are being employed after school or summer jobs on minimum wage like we still live in Mayberry times is long dead. I don't get why this still pops up.
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#31. To: CZ82 (#30)
Sounds like you guys are willing to accept these changes (for the worse) to our country instead of fixing the real problem(s)???
#32. To: sneakypete, pericles (#28)
Sure. Why not dump your $15/hour job putting up dry wall and just take $15/hour to flip burgers instead? Neither job is a skilled tradesman job.
#33. To: Pericles (#24)
TC is correct - this idea that kids are being employed after school or summer jobs on minimum wage like we still live in Mayberry times is long dead. I don't get why this still pops up.
#34. To: TooConservative, Pericles, redleghunter, Liberator, tomder55 (#22)
And I recall when you could make ends meet on minimum wage. I did it while working through college. So did a lot of other people.
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#35. To: TooConservative (#31)
Then there are the tourist spots mostly along the coasts where we often import foreign teenagers to work resorts and beach concession stands and so on. They allow in tens of thousands of foreigners to do this work. So it isn't just illegals, it's also foreigners with a legal job. Probably some of them then overstay their visa as we do know that a large portion of the "illegals" are people who overstayed a lawful student visa or work visa.
#36. To: Pericles (#25)
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#37. To: CZ82 (#34)
the route I traveled to become a responsible human
#38. To: CZ82 (#36)
If you would be so kind as to inform me "which politicians" want to do the right thing for this country instead of looking out for their own wallet then we'll both know...
#39. To: TooConservative, Pericles (#31)
Then there are the tourist spots mostly along the coasts where we often import foreign teenagers to work resorts and beach concession stands and so on. They allow in tens of thousands of foreigners to do this work. So it isn't just illegals, it's also foreigners with a legal job. Probably some of them then overstay their visa as we do know that a large portion of the "illegals" are people who overstayed a lawful student visa or work visa.
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#40. To: sneakypete (#28)
n any case, cities that have a high cost in housing should adopt socialist measures and build low cost community housing that will allow minimum wage workers to afford care.
#41. To: CZ82 (#39)
#42. To: All (#32)
#43. To: A K A Stone (#37)
Aren't you the one who used to drive through puddles when it was raining to splash old ladies?
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#44. To: Pericles (#41)
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#45. To: A K A Stone (#38)
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#46. To: CZ82, A K A Stone, Pericles (#39)
(Edited)
Raising minimum wage will only entice more of them to come here and ruin it for everybody else.
#47. To: CZ82 (#29)
$5 says he's never done any "rocking" before, especially ceilings...
#48. To: Pericles (#40)
The proposals I have read and liked have to do with cities handing over land they own (so I guess that is socialism) and giving it away to a developer with the condition they produce housing that will be sold or rented at predetermined rates.
#49. To: sneakypete (#48)
In the REAL world,the way those schemes always work out is that the contracts ALWAYS go out to someone politically connected (like Trump,for example)in exchange for kickbacks,and then the projects are delayed due to rising costs and the payouts get upped in order for the politicians to brag about finishing them. Everybody knows going in that unless the contractor is black or some other minority including a member of the majority female population,the bid is so low it would be impossible to complete for the stated budget,and that "adjustments will be made down the road".
#50. To: GrandIsland, TooConservative (#0)
#51. To: Pericles (#49)
It does not matter - the cost is borne by the real estate developer.
#52. To: sneakypete (#51)
It does not matter - the cost is borne by the real estate developer. You really do believe that,don't you?
#53. To: CZ82, TooConservative, Pericles, redleghunter, Liberator, (#34)
#54. To: tomder55 (#53)
www.nytimes.com/1987/01/1...ht-minimum-wage-0.00.html
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#55. To: A K A Stone (#38)
#56. To: A K A Stone (#38)
#57. To: tomder55 (#53)
#58. To: A K A Stone (#38)
#59. To: tomder55, CZ82, TooConservative, Pericles, redleghunter (#53)
The NY Slimes editorial in 1984 called for a min wage of $0.0
#60. To: Pericles (#16)
("Why not dump your $15/hour job putting up dry wall and just take $15/hour to flip burgers instead?")
#61. To: TooConservative, CZ82 (#22)
I recall when you could make ends meet on minimum wage. I did it while working through college. So did a lot of other people.
#62. To: Liberator (#60)
Huh?? You ever do drywall??
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
#63. To: buckeroo (#56)
“Let me see which pig "DON'T" I want to vote for, the one with or without lipstick??" Hmmmmm...
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