CEO cuts own pay so workers can make $70,000/year

The CEO of a small credit card payment processing company in Seattle has taken a cut in his $1 million/year salary so that every member of his 120-employee staff can be paid $70,000 a year.

http://www.kansascity.com/news/business/article18499475.html

I know it’s just one small company, but it’s nice to see a CEO who recognizes that he is overvalued and his employees are underpaid. We need more CEOs like this.

I hope that this experiment works out well for them.

And in unison, CEOs around the world began tugging their collars like Rodney Dangerfield…

A well known CEO of a much larger company doing this could start a trend, but I wouldn’t count on it. This is a business owner, most CEOs aren’t, and it’s hard to see them giving up the pay that they’re in the job for in the first place.

ETA: Most CEOs of large businesses are not owners. Small companies are usually run by their owners.

If this guy is also the company owner, in addition to CEO, he has money at risk, has built up the business and has presumably managed it to considerable size for this type of business. And he is OK with making what everyone else there does? He plans to continue making the hard decisions, managing people and keeping customers happy? This story is either a complete hoax, or is PR stunt for some ulterior purpose that the media is glad to lap up.

But hey, he’s (and any other owners or corporate board) free to try it. Can’t wait to see how hard people work when they are all making the same amount. Let’s see how it works out a year from now.

Maybe he’s motivated by something other than money? Why is that so hard to believe?

From the linked article:

Sounds like he’s not expecting/hoping to continue making what everyone else there does long-term.

Periodically there’s a story about some guy who takes a job for $1/year. They are able to do such because they’re already loaded & don’t need to work for income; is that the case here?

I don’t understand this part:

Doesn’t he provide health insurance for his workers?

My employer provides pretty good medical insurance but it’s still pricey to go to the ER. They like to discourage you from going there unless you really have to.

My insurance has a $4000 deductible. If I had to get anything more than 4K done near the beginning of the year I’d be on the hook for the whole thing. Going to the ER could be a few hundred dollars for a few stitches, a few thousand for something that involved imaging or even more if you ended up in surgery.

Probably. If he didn’t blow through what he got paid for the last few years, he’s set and can afford to take the pay cut.

Maybe he’s a Democrat. :slight_smile:

$1 a year salaries are not that uncommon - but the CEOs still get their stock, which is where the money is.

Steve Jobs worked for a buck a year for some time. He still made off like a bandit.

I got charged over $700 in an ER so the doc can look into my ear for 3 seconds and determine that no, I hadn’t lost the q-tip head in there. :stuck_out_tongue:

The cynic in me wonders if there is some middle manager in that company, who worked his ass off for years,and sacrificed for his career, to finally get to a salary of $70,250, who is now punching holes in trees and screaming like a madman.

I’m encouraged to hear this news. I wonder if I could reward that business some way… You know, if they sold hot dogs, I’d buy some of their hot dogs. But they’re a credit card processing company, whatever that is.

Ouch.

No, he didn’t. He had stock options that made his earnings millions.

His salary was a dollar per year, which was the point Voyager was making.