# CEO cuts own pay so workers can make $70,000/year **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [April 15, 2015, 5:39pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749 "2015-04-15T17:39:33Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Shoeless](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/shoeless/32/7099_2.png) [@Shoeless](https://boards.straightdope.com/u/Shoeless)\ **Post date:** [April 15, 2015, 5:39pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/1 "2015-04-15T17:39:33Z")
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. > **[At Seattle company, the new minimum wage is $70,000 a year](https://www.kansascity.com/news/business/article18499475.html)** > > The idea began percolating, said Dan Price, the founder of Gravity Payments, after he read an article on happiness. 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. ---
**Author:** ![JerrySTL](https://avatars.discourse-cdn.com/v4/letter/j/e274bd/32.png) [@JerrySTL](https://boards.straightdope.com/u/JerrySTL)\ **Post date:** [April 15, 2015, 5:43pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/2 "2015-04-15T17:43:12Z")
I hope that this experiment works out well for them. ---
**Author:** ![VinylTurnip](https://avatars.discourse-cdn.com/v4/letter/v/b2d939/32.png) [@VinylTurnip](https://boards.straightdope.com/u/VinylTurnip)\ **Post date:** [April 15, 2015, 5:44pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/3 "2015-04-15T17:44:39Z")
And in unison, CEOs around the world began tugging their collars like Rodney Dangerfield… ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [April 15, 2015, 6:00pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/4 "2015-04-15T18:00:41Z")
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. ---
**Author:** ![Orwell](https://avatars.discourse-cdn.com/v4/letter/o/dfb087/32.png) [@Orwell](https://boards.straightdope.com/u/Orwell)\ **Post date:** [April 15, 2015, 6:03pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/5 "2015-04-15T18:03:11Z")
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. ---
**Author:** ![Thudlow\_Boink](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/thudlow_boink/32/320_2.png) [@Thudlow\_Boink](https://boards.straightdope.com/u/Thudlow_Boink)\ **Post date:** [April 15, 2015, 6:15pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/6 "2015-04-15T18:15:19Z")
> [@Orwell](#): > > 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. Maybe he’s motivated by something other than money? Why is that so hard to believe? From the linked article: > [@](#): > > He said he planned to keep his own salary low until the company earned back the profit it had before the new wage scale went into effect. Sounds like he’s not expecting/hoping to continue making what everyone else there does long-term. ---
**Author:** ![Spiderman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spiderman/32/230_2.png) [@Spiderman](https://boards.straightdope.com/u/Spiderman)\ **Post date:** [April 15, 2015, 6:36pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/7 "2015-04-15T18:36:33Z")
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? ---
**Author:** ![Slash1972](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slash1972/32/6461_2.png) [@Slash1972](https://boards.straightdope.com/u/Slash1972)\ **Post date:** [April 15, 2015, 6:38pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/8 "2015-04-15T18:38:15Z")
I don’t understand this part: > [@](#): > > Hayley Vogt, a 24-year-old communications coordinator at Gravity who earns $45,000, said, “I’m completely blown away right now.” She said has worried about covering rent increases and a recent **emergency room bill**. Doesn’t he provide health insurance for his workers? ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [April 15, 2015, 7:00pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/9 "2015-04-15T19:00:14Z")
> [@Slash1972](#): > > 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. ---
**Author:** ![Joey\_P](https://avatars.discourse-cdn.com/v4/letter/j/919ad9/32.png) [@Joey\_P](https://boards.straightdope.com/u/Joey_P)\ **Post date:** [April 15, 2015, 7:06pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/10 "2015-04-15T19:06:03Z")
> [@Slash1972](#): > > I don’t understand this part: > > Doesn’t he provide health insurance for his workers? > [@wguy123](#): > > 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. ---
**Author:** ![silenus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/silenus/32/166_2.png) [@silenus](https://boards.straightdope.com/u/silenus)\ **Post date:** [April 15, 2015, 7:31pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/11 "2015-04-15T19:31:05Z")
> [@Spiderman](#): > > 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? 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. ---
**Author:** ![carnivorousplant](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carnivorousplant/32/3563_2.png) [@carnivorousplant](https://boards.straightdope.com/u/carnivorousplant)\ **Post date:** [April 15, 2015, 7:31pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/12 "2015-04-15T19:31:34Z")
> [@Orwell](#): > > 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 a Democrat. 🙂 ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [April 15, 2015, 7:36pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/13 "2015-04-15T19:36:42Z")
> [@Spiderman](#): > > 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? $1 a year salaries are not that uncommon - but the CEOs still get their stock, which is where the money is. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [April 15, 2015, 7:41pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/14 "2015-04-15T19:41:05Z")
> [@Voyager](#): > > $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. ---
**Author:** ![Kinthalis](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kinthalis/32/16084_2.png) [@Kinthalis](https://boards.straightdope.com/u/Kinthalis)\ **Post date:** [April 15, 2015, 7:43pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/15 "2015-04-15T19:43:42Z")
> [@Joey\_P](#): > > 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. 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. 😛 ---
**Author:** ![wolfman](https://avatars.discourse-cdn.com/v4/letter/w/a8b319/32.png) [@wolfman](https://boards.straightdope.com/u/wolfman)\ **Post date:** [April 15, 2015, 7:56pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/16 "2015-04-15T19:56:10Z")
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. ---
**Author:** ![bobot](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bobot/32/21622_2.png) [@bobot](https://boards.straightdope.com/u/bobot)\ **Post date:** [April 15, 2015, 8:12pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/17 "2015-04-15T20:12:56Z")
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. ---
**Author:** ![carnivorousplant](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carnivorousplant/32/3563_2.png) [@carnivorousplant](https://boards.straightdope.com/u/carnivorousplant)\ **Post date:** [April 15, 2015, 8:15pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/18 "2015-04-15T20:15:38Z")
> [@wolfman](#): > > 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. Ouch. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 15, 2015, 8:27pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/19 "2015-04-15T20:27:45Z")
> [@friedo](#): > > Steve Jobs worked for a buck a year for some time. He still made off like a bandit. No, he didn’t. He had stock options that made his earnings millions. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [April 15, 2015, 8:46pm UTC](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749/20 "2015-04-15T20:46:59Z")
> [@DrDeth](#): > > 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. [Next page](https://boards.straightdope.com/t/ceo-cuts-own-pay-so-workers-can-make-70-000-year/717749.md?page=2)