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Showing posts with label Seattle. Show all posts
Showing posts with label Seattle. Show all posts

Thursday 16 April 2015

Seattle CEO Dan Price cuts own salary by 90% to pay every worker at least $70,000

Adam Whitnall in The Independent

The tech business founder says CEO pay in the US is 'way out of whack'



A chief executive has announced plans to raise the salary of every single employee at his company to at least $70,000 (£47,000) – and will fund it by cutting his own salary by 90 per cent.

Dan Price, the CEO of Seattle-based tech company Gravity Payments, gathered together his 120-strong workforce on Monday to tell them the news, which for some will mean a doubling of their salary.

Seattle was already at the heart of the US debate on the gulf in pay between CEOs and ordinary workers, after the city made the ground-breaking decision to raise the minimum wage to $15 (£10.16) an hour in June.

But Mr Price, 30, has gone one step further, after telling ABC News he thought CEO pay was “way out of whack”.

In order not to bankrupt the business, those on less than $70,000 now will receive a $5,000-per-year pay increase or an immediate minimum of $50,000, whichever is greater.
A spokesperson for the company said the average salary was currently $48,000, and the measure will see pay increase for about 70 members of staff.


The announcement of the plan was made on Monday (YouTube)The announcement of the plan was made on Monday (YouTube)


















The target is for everyone to be on $70,000 by December 2017, while Mr Price has pledged to reduce his own pay from $1 million a year to the same minimum as everyone else, at least until the company’s profits recover.

Making the announcement, Mr Price said: “There are risks associated with this – but this is one of the things we’re doing to try and offset that risk.

“My pay is based on market rates and what it would take to replace me, and because of this growing inequality as a CEO that amount is really high. I make a crazy amount.

The New York Times, which was invited along for the Wolf of Wall Street-esque announcement, reported that after the cheering died down Mr Price shouted: “Is anyone else freaking out right now?”

Mr Price told ABC News he settled on the figure of $70,000 for all after reading study published by the University of Princeton, which found that increases in income above that number did not have a significant positive impact on a person’s happiness. He said that while he had an “incredibly luxurious life” and super-rich associates, he also had friends who earned $40,000 a year and said their descriptions of struggling to deal with surprise rent increases or credit card debts “ate at me inside”.

Mr Price set up Gravity, a credit card payment processing company, in 2004 when he was just 19. Entrepreneurship runs in the family – his father Ron Price is a consultant and motivational speaker who has written a book on business leadership.

And even if the measure to set such a high minimum wage is a publicity stunt, it has resonated with people in a country where some economists estimate CEOs earn nearly 300 times the salary of their average worker.

Mr Price said he “hadn’t even thought about” how he was going to adjust to earning 90 per cent less, adding: “I may have to scale back a little bit, but nothing I’m not willing to do – I’m single, I just have a dog.

“I’m a big believer in less,” he added. “The more you have, sometimes the more complicated your life gets.”

Monday 5 February 2007

Sexpresso coffee shops take Seattle by storm

By Andrew Gumbel in Los Angeles

Published: 05 February 2007

At the Sweet Spot Cafe in the northern suburbs of Seattle, you get more than a foam topping on your cappucino. You get a waitress in a bikini, or maybe a tight-fitting T-shirt, and a choice of drinks with names such as Wet Dream (with caramel and white chocolate), Sexual Mix (a caramel macchiato) or Erotic Pleasure.
South of the city, in Tukwila, the baristas at Cowgirls Espresso wear sheer negligees and visible pink panties. It's the same story in any number of other suburban bars and drive-through stands, like the Natte Latte in Port Orchard or Moka Girls in Auburn - bikinis, racy lingerie, fetish clothing, and plenty of suggestively exposed flesh.
At Best Friend Espresso in Kenmore, at the northern end of Lake Washington, the outfits take their inspiration from Playboy-style sex fantasies. The staff will go for the naughty schoolgirl look one week, then don black-framed glasses the next to look like sexy secretaries.
Welcome to "sexpresso" - the latest coffee fad to hit America, in which the country's seemingly boundless fascination for Italian-style Java is combined with its equally boundless fascination for half-naked women.
Seattle may not be the first American city to come to mind when it comes to the pleasures of the flesh, but it is super-saturated with coffee stands, all of which are battling each other - and the mighty, locally based behemoth that is Starbucks - to give morning commuters an extra reason to stop off at their particular establishment.
"Here on Aurora Avenue, there's a drive-through every 20 blocks. You have to do something to stand out," said Sarah Araujo, owner of The Sweet Spot. Ms Araujo brainstormed with her customers to come up with something new and different when she bought the cafe - then called Aurora Espresso - a couple of years ago.
Not only did her staff start removing clothing and giving suggestive new names to the drinks, they also started doing theme days - Tube Top Tuesdays, Wet T-Shirt Wednesdays and Fantasy Fridays.
The plastic coffee cups are indistinguishable in shape from those sold in any other coffee shop in north America. But they are decorated with the silhouette of a busty naked woman carrying a steaming mug of "Joe". The lid is sealed with a pink lipstick kiss.
During the summer, when the persistent Seattle rain finally lifts and the Pacific Northwest enjoys a few months of real sunshine, The Sweet Spot organises bikini car washes and takes care to post the most suggestive photographs on its website. This year, the cafe is planning a barista calendar.
Coming with a theme for a coffee bar is nothing new in America. In Los Angeles, there are cafes where you can buy second-hand books, get cut-price legal advice, throw pots, or listen to really, really bad live music provided by local bands. Strangely, nobody until now has thought of combining coffee with sex.
Ms Araujo and others say it has given an unmistakable boost to their businesses. Their staff may only receive minimum wage, but the tips can be terrific.
"Our customers may be half-asleep when they get here, but we do what it takes to wake them up," said Ms Araujo. "They always say: 'Thanks for the great cup of coffee and the smile; it made my day'."
Some local puritans have expressed disquiet - and railed at The Seattle Times newspaper after it ran a feature on the sexpresso trend 10 days ago. But law enforcement officials say there is nothing illegal about wearing scanty clothing, so the trend is almost certain to keep spreading.
Even Seattle, though, has its limits. Sexy underwear is all very well, but the city hardly has the climate of French Polynesia.
"We're not in bikinis right now," Ms Araujo conceded in the murky early hours of yesterday. "We're going more for miniskirts and boots. It's pretty cold up here."


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