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.
"Price's life may get more complicated the week of Dec. 7, when TEDx plans to post online a public talk by his former wife, who changed her last name to Colon. She spoke on Oct. 28 at the University of Kentucky about the power of writing to overcome trauma. Colon stood on stage wearing cerulean blue and, without naming Price, read from a journal entry she says she wrote in May 2006 about her then-husband. "He got mad at me for ignoring him and grabbed me and shook me again," she read. "He also threw me to the ground and got on top of me. He started punching me in the stomach and slapped me across the face. I was shaking so bad."
I liked it better when he was an idealistic hippie. The idea that one moronic but well meaning CEO was doing bullshit to help people, even if it had long term ruinous consequences, was pleasant.
Now it's just another greedy 0.1%er nomming up cash and playing a good game of sociopathic prisoner's dilemma. Boring. That's so ubiquitous in corporations that it's just a common stereotype in all the netflixes and youtubes. Hell, prolly the redtubes too.
....maybe there are two separate things going on here. One is Dan's pay, and the other is how much they're paying everyone else. How is it that they're conflating the two issues so that one seems like a smoke screen for the other? Is there even a rational connection between the two other than being about pay for people within the company?
Is it possible that Dan wants to get paid a lot, but also wants everyone else to get paid well? Clearly the motivations to pay everyone else well are quite different from the motivations to pay himself lots of money. I think it's more reasonable to consider these as two separate things.
"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."
Except that short-term profitability has DOUBLED since wages increases commenced (source). Did his plan then backfire?
Of course, take everything in a divorce filing with several grains of salt...
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
No facts. Rampant speculation/innuendo/suspicion. Why do I read this page again?
Drama by Dice, served hot. Next up, women in tech!
Whatever, I'd have loved to have worked in his company
Are you aware that there are like 5 other women who came forward to also accuse him of rape?
I don't know if he did rape all those women or if he's just such a big asshole that so many of them "bare false witness" to hurt him, either case fuck him.
lucm, indeed.
These kinds of people need to be sued for slander, because it devalues the plight of women who were actually abused.
Gamingmuseum.com: Give your 3D accelerator a rest.