Seattle CEO cuts own pay to help employees

Associated Press

SEATTLE

For some companies, Seattle’s new $15 minimum-wage law isn’t doing enough to help workers.

The CEO of Gravity Payments, a Seattle-based company that processes credit-card payments, told his employees this week that he was cutting his roughly $1 million salary and using company profits so they would each earn a base salary of $70,000, to be phased in over three years.

Dan Price’s announcement surprised everyone at a company meeting, Seattle television station KING reported. He says his pay cut is worth it to make the company’s more than 100 employees happy and to build loyalty.

“I think this is just what everyone deserves,” Price told workers.

Earlier this month, Seattle’s minimum-wage law went into effect, which will eventually raise base hourly pay to $15. It’s phased in more quickly for big companies than small ones: Large businesses and national chains had to raise their minimum wage to at least $11 an hour when the law took effect April 1, while smaller businesses now must pay at least $10.

Washington state already has the nation’s highest minimum wage at $9.47 an hour.

People in the Seattle area rallied Wednesday for wage increases as part of national protests.