What happened to the company that gave a large pay increase to their employees?

[genglandoh]

A few years ago there was a company that gave large pay increases to their employees.
I think we had a thread about it here but I can not find it.

Does anyone remember the details and what ever happened to the company?

Thanks in advance.

[Ian McColgin]

Re: What happened to the company that gave a large pay increase to their employees?

As of a year ago, basically good things. I googled. The stories from when he did it were both balanced and wildly anti. But the most recent shows that while some employees felt denigrated, on the whole it worked. I'll save you the google: https://www.goodnewsnetwork.org/empl...age-70k-tesla/

[genglandoh]

Re: What happened to the company that gave a large pay increase to their employees?

As of a year ago, basically good things. I googled. The stories from when he did it were both balanced and wildly anti. But the most recent shows that while some employees felt denigrated, on the whole it worked. I'll save you the google: https://www.goodnewsnetwork.org/empl...age-70k-tesla/

Thanks that was the one.

[genglandoh]

Re: What happened to the company that gave a large pay increase to their employees?

Here is a review of what happened.
IMHO it worked because
1. The CEO took a large pay cut to offset the increase in workers pay.
2. The News stories increased their sales.

http://www.today.com/money/gravity-payments-70k-minimum-salary-ceo-dan-price-shares-results-t101678

[oznabrag]

Re: What happened to the company that gave a large pay increase to their employees?

[Tom Lathrop]

Re: What happened to the company that gave a large pay increase to their employees?

Here is a review of what happened.
IMHO it worked because
1. The CEO took a large pay cut to offset the increase in workers pay.
2. The News stories increased their sales.

http://www.today.com/money/gravity-p...esults-t101678

And you think that an extreme ratio between CEO an actual worker salaries must be maintained? Or was there some other reason that you think its an aberration?

[Canoeyawl]

Re: What happened to the company that gave a large pay increase to their employees?

Looking for bad news?

"But that’s not what happened. Instead, sales skyrocketed after the announcement, and Gravity Payments continues to take on new clients at a rate it never had before. It reports nearly doubling profits in a year, from $3.5 million in 2014 to $6.5 million in 2015"

[Duncan Gibbs]

Re: What happened to the company that gave a large pay increase to their employees?

I think Graeme is looking for a degree of common ground for which I'll applaud him.

In Australia the pay gap between CEOs and coal-face employees is vast. In the past CEOs were simply another employee, but now it's a club that involves a great degree of back scratching, doesn't necessarily improve the value of a company, except on paper, and ultimately doesn't provide shareholder value. That's a generalisation of course, but on the whole it's true.