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The Story of the CEO Paying Everyone $70k Gets Complicated

Posted by samzenpus on from the not-so-fast dept.

ranton writes: Dan Price, CEO of Gravity Payments, made news last April when he raised all employee salaries to at least $70,000. He claimed his motive was based on research that shows increased wages increase happiness up to about $75k per year. But according to a recent Bloomberg article this may have been a smoke screen. Karen Weise found Dan Price has been fighting with his co-founder Lucas Price over Dan's salary for years, and that his co-founder served him with a lawsuit weeks before the pay raises were announced. Apparently Dan had been paying himself nearly three times the salary of CEO's of similar sized companies in his industry, over the strong objection of his co-founder. The lawsuit was not officially filed until after the announcement, making it originally look like the pay rise caused the lawsuit. Now it appears to be the opposite. Since the lawsuit is trying to force the CEO to buy out his co-founder based on the CEO's prior greed, lowering the short term profitability of the company while boosting his positive PR seems to be a likely motive for the pay hike.

7 of 233 comments (clear)

  1. SlashTMZ by Anonymous Coward · · Score: 2, Funny

    Drama by Dice, served hot. Next up, women in tech!

  2. Re:I feel as if /. is now a shitty tabloid. by sexconker · · Score: 3, Funny

    Oopoooooooh pick me, pick me! I know this one!
    It's because we're all cows!

  3. Re:Gets worse near the end of the article by mridoni · · Score: 5, Funny

    Is that you, Mr. Cosby?

  4. Re:Gets worse near the end of the article by AmiMoJo · · Score: 1, Funny

    who changed her last name to Colon

    Is this a failed attempted at an SQL injection attack?

    --
    const int one = 65536; (Silvermoon, Texture.cs)
    SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  5. Re:Gets worse near the end of the article by lucm · · Score: 1, Funny

    9000+ barely qualifies as a 4-digit. That's like saying you own a Cisco router but really it's a Linksys with the Cisco logo that you got on sale at Best Buy for $39 and would you have waited 1 week it would have been a Belkin.

    --
    lucm, indeed.
  6. Re:Gets worse near the end of the article by neoritter · · Score: 3, Funny

    Are we comparing digits?

  7. Re:Gets worse near the end of the article by chispito · · Score: 5, Funny

    If it helps: I've a 4-digit ID, I went through a very nasty divorce about 15 years ago, and I concur with Thunderf00t.

    I thought you were going to say, "I had a 4-digit ID, but I went through a very nasty divorce about 15 years ago, and my spouse received it in the settlement."

    --
    The Daddy casts sleep on the Baby. The Baby resists!