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The Story of the CEO Paying Everyone $70k Gets Complicated
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.
I'm not entirely dismissing it, of course. But it's hardly something relevant to the discussion of the motives behind the salary increase. And considering Bloomberg's well known stance on wealth distribution, well we can probably suppose they don't exactly like him.
I don't get what "officially filed" means, though. when the lawsuit was still in "unofficial state", what certifies its date of filing as before the official filing? Is it just the plaintiff's word?
So is lying about being punched