The founder of Gravity Payments has pledged to boost the minimum wage for his 120-strong team to $70,000 a year, funding the generous bump in part by slashing his own pay.
Dan Price, who started the Seattle-based credit card payment processing firm in 2004, has set a three year target to reach the $70,000 mark in stages for his staff, who currently earn an average of $48,000.
To pay for the move, Price is cutting his own salary from nearly $1 million to the $70,000 figure and committing up to 80% of the privately owned company's profits for the year. His remuneration will rise again when Gravity earns back the profit that goes into the wage hikes.
According to the New York Times
, Price decided to take the dramatic step after reading an academic article on happiness that found that emotional well-being rises with income up until about $75,000 a year but that after that point there are no further gains.
For those interested, Gravity Payments is currently advertising
two jobs on its website.