Davidson is a certified professional trainer, business coach and management consultant.
Driven by passion, he is an engaging and versatile presenter with over 20 years of experience in the training industry. Over the course of his career, he has trained over 1,000 companies comprising start-ups, SMEs, MNCs, government agencies and others all over Southeast Asia.
Here is your change to ask him a Question or read some of the advice given to others.
Taking A Cut; Risky Move?
I am sure most of you would have read the news about Dan Price, the CEO of a Seattle-based credit card processing firm, Gravity Payment who decided to cut his $1million salary down to $70,000.
No, the guy wasn’t start-raving mad. But yes, it was indeed shocking and hard to believe especially when you have been reading such news like MPs awarding a pay rise to them while the common folk are tightening their belts battling an increase in living expenses.
So, why did Dan Price do what he did?
Simple, he realized that the average salary his staff was making was $48,000 and that to make a significant difference in their lives; they would need to earn at least $70,000 a year. So he decided to give everyone a raise and doubled most of their salaries by taking a huge pay cut and utilizing more than three quarters of this year’s profits to fund the new salaries.
Price said that he will keep his salary low till the profits are earned back.
Needless to say, this move of his would definitely garner unparallel goodwill and loyalty. There is no greater motivation than seeing your CEO think about your welfare first as an employee.
But do you think it was wise of him to use three quarters of the company’s profits to fund the new salary scheme? Is this leadership at its best or a risky move?