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Simply because one has the desire to be “their own boss”, doesn’t necessarily mean you have the skills to be “your own boss!” Take for example Dan Price the CEO of Gravity Payments, a Seattle-based credit card payment processing firm, who decided that everyone regardless of experience “deserved” a starting salary of $70,000 a year, which is approximately $25,000 a year more than the national average.

Obviously when Price announced the salary increases everyone in the firm cheered and thought they had won the lottery, and no doubt if you were a kid just out of school with minimum skill sets earning $70K, you did!

However within a few short months those experienced and skilled employees within the firm began to quickly realize that giving everyone over the top raises without actually “earning” or perhaps worse yet, not having the “experience” to actually justify those unrealistic salaries.

Because of this situation the skilled and experienced employees began to quit.

Maisey McMaster a former employee and once a big supporter of the plan said; “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.”

To make matters worst Mr. Price’s older brother and Gravity co-founder, Lucas Price, citing longstanding differences, filed a lawsuit that potentially threatened the company’s very existence. With legal bills quickly mounting and most of his own paycheck and last year’s $2.2 million in profits plowed into the salary increases, Dan Price said, “We don’t have a margin of error to pay those legal fees.”

Do you think this CEO should be fired for running this business in a reckless way to satisfy his liberal ideals?

h/t: Business Insider

 

 

 

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