Aww ….. Poor CEO Socialist Losing His Pants On Idiotic Pay Hike!

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This gives me the giggles!

Seattle CEO who set firm’s minimum wage to $70G says he has hit hard times

The Seattle CEO who reaped a publicity bonanza when he boosted the salaries of his employees to a minimum of $70,000 a year says he has fallen on hard times.

Dan Price, 31, tells the New York Times that things have gotten so bad he’s been forced to rent out his house.

Only three months ago Price was generating headlines—and accusations of being a socialist — when he announced the new salary minimum for all 120 employees at his Gravity Payments credit card processing firm. Price said he was doing it, and slashing his $1 million pay package to pay for it, to address the wealth gap.

“I’m working as hard as I ever worked to make it work,” he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. “I’m renting out my house right now to try and make ends meet myself.”

The Times article said Price’s decision ended up costing him a few customers and two of his “most valued” employees, who quit after newer employees ended up with bigger salary hikes than older ones.

“He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” Gravity financial manager Maisey McMaster, 26, told the paper.

She said when she talked to Price about it, he treated her as if she was being selfish and only thinking about herself.

“That really hurt me,” she said. “I was talking about not only me, but about everyone in my position.”

Yes, it’s so selfish to want to get paid for your efforts.  Look, if the boss wants me to bust my a$$ and work hard for him/her, then they can’t pay the ones who don’t the same as me.  Why would I put out the extra effort if it isn’t going to be rewarded?  Or, put another way …….

….. .

Grant Moran, 29, also quit, saying the new pay-scale was disconcerting

“Now the people who were just clocking in and out were making the same as me,” he told the paper. “It shackles high performers to less motivated team members.”

Price said McMaster and Moran, or even critic Rush Limbaugh, the talk show host, were not wrong.

“There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” he said.

The Times said customers who left were dismayed at what Price did, viewing it as a political statement. Others left fearful Gravity would soon hike fees to pay for salary increases.

Brian Canlis, co-owner of a family restaurant, already worried about how to deal with Seattle’s new minimum wage, told Price the pay raise at Gravity “makes it harder for the rest of us.”

“It pains me to hear Brian Canlis say that,” Price said. “The last think I would ever want to do is make a client feel uncomfortable.”

Well, right, because we didn’t think one person giving out ludicrous raises doesn’t pressure other employees to boost their wages.   

The Times said Price has dozens of new clients inspired by his move but those accounts won’t start generating profits for at least another year.

Making matters worse for Price is a lawsuit his older brother filed two weeks after the pay hike announcement.

Lucas Price, who owns 30 percent of the company, accuses his brother of taking millions of dollars out of the company while denying him the benefits of his minority ownership.

The lawsuit has forced Gravity to pay mounting legal fees at a time when the new salary scale is being eaten up by profits.

“We don’t have a margin of error to pay those legal fees,” Dan Price said.

I suppose the best lesson to learn here is that businessmen are not economists.  I assume Dan Price has some ability and knowledge in one area or another, but, clearly even micro-economics are beyond him. 

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17 Responses to Aww ….. Poor CEO Socialist Losing His Pants On Idiotic Pay Hike!

  1. Latitude says:

    first he should have made everyone join the union………….snark

  2. DirkH says:

    well but at least the slackers in his company will love him.

  3. DirkH says:

    “Lucas Price, who owns 30 percent of the company, accuses his brother of taking millions of dollars out of the company while denying him the benefits of his minority ownership. ”

    Guy has all chances to win as his brother demonstrably violated his fiduciary duty towards his shareholders.

  4. Bruce of Newcastle says:

    Here we go:

    A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.

    – Milton Friedman

    • suyts says:

      A spot on and apt quote! Thanks, Bruce!

    • squid2112 says:

      Right on Bruce! … GOD I wish people would understand this … how many times does this have to be demonstrated before people get it? … sheesh…

      • cdquarles says:

        Infinite, I’m afraid. Human nature, unfortunately, would rather put faith in a lie instead of the truth.

        People, I think, will never understand economics as long as the current political paradigm rules. It really isn’t that hard. Why do I buy instead of making my own or doing without? I buy because buying enhances my life more, for the price demanded. Why? Economic value is relative and prices can only be discovered by buyers and sellers working it out, voluntarily. It is the exchange that makes the value visible, but that value is not fixed. It is subject to the changing facts of life. Force or fraud prevent this. Only energy and human brains are absolute values and resources, respectively. Everything thing else is either a potentiality awaiting creative production or it is valueless or worthless until it can be put to use by a human to ‘be fruitful and multiply and replenish the Earth’.

        • Bruce of Newcastle says:

          Paul said it nearly two thousand years ago:

          For the time will come when people will not put up with sound doctrine. Instead, to suit their own desires, they will gather around them a great number of teachers to say what their itching ears want to hear.

          They want to believe, but reject the stuff which is hurty. So they swallow the lies of the left.

          The perfect example is Venezuela, which is rapidly disintegrating despite enacting all the pet socialist policies.

          Venezuela Increasingly Looks Like A War Zone

  5. leftinflagstaff says:

    How lucky this guy is to get a business ownership position such as this. It sure wasn’t intellect.

    You had the most ‘perfect way’ possible before, Dan, paying according to value.

  6. Ted G says:

    A first class socialist clown with an idiot flare. The company is dead meat. Walking dead!

    • squid2112 says:

      Yes, if I were a customer of his, I would leave in an instant. This just shows me that his is a mental midget and his company is doomed. He obviously doesn’t understand the value in the business world of a stable business supplier. I believe this idiot is going to learn a very tough lesson here. Back to McDonald’s for him!

  7. squid2112 says:

    You know, this was a great experiment, and should be a lesson to anyone with an IQ greater than a turnip, and a capacity for rational thought. This is exactly akin to requiring a minimum wage, a minimum wage at any rate will have the exact same effect, just on differing scales, as his $70k/yr is exactly a minimum wage. When they have been talking about a $15/hr minimum wage, rational minds asked, “if $15/hr, why not $50/hr?”, or in Dan Price’s example, $70k/yr. They all have the same effect.

    • cdquarles says:

      Exactly right. The only minimum wage that is real and non-distorting, is $0. Any other wage must be earned. I don’t have a right to any wage, but what I do earn, it is *MINE*. While taxes are necessary, no one, not even the government, has the right to force tax rates higher than minimally necessary. God *asks* for the first 10%. You don’t have to give Him this; but you WILL pay a price if you don’t.

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