CEO reaps rewards for good deed

April 23 2015 10:29 PM

Dan Price photo from Dan Price Facebook account
Dan Price (photo from Dan Price’s Facebook account)

Kindness begets more kindness.

Truckloads of blessing has come Dan Price’s way after the Gravity Payment chief executive officer (CEO) decided to cut his pay by 90 percent in favor of raising his employees’ salaries.

Price’s good deed has made the firm more appealing to businesses, attracting dozens of new clients a week after his announcement on April 13.

“The reaction has me on cloud 9,” the shocked CEO said in an interview by CNN.  Price said he was inspired to make the personal sacrifice after reading a book on happiness.

Humbled by the public’s reaction, the CEO was quick to dismiss the hype about the pay cut and assured customers that it is the chief responsibility of any firm to deliver the best service. “In the short-term [news about the pay cut] could help demand for our services. But clients won’t stay with a company that’s not providing a superior value,” he said.

Price’s salary was slashed to US$70,000 from US$1 million a year. The pay cut will, in turn, benefit 120 of his employees, 90 of whom will receive a gross pay of US$70,000 a month while the remaining 30 workers’ salaries will be doubled. The salary raise benefits all employees including the lowest-paid clerk, customer service representatives and sales personnel.

The Idaho-born chief was last year’s honoree by Entrepreneur Magazine’s “2014 Entrepreneur of the Year,” and was accorded a similar honor by President Barrack Obama in 2008, among many of his accolades.

Interestingly,  Price’s much-publicized announcement has also attracted 3,500 applicants for a job posting for the firm’s two personnel requirements versus the 390-400 they typically receive.

Gravity Payment provides solutions to credit card  and mobile payments to at least 12,000 business establishments, according to its website. The firm processes at least US$10 billion in payments annually.

Aside from the salary upgrade, the 11-year-old firm also donates 10 percent of its annual profits to charitable organization under the “Gravity Gives” program.