Gravity Compensation
Student’s Name
Institutional Affiliation
Gravity Compensation
Dan Price, the Chief Executive Officer of Gravity Payments, increased the minimum wage of his staff mainly to improve their financial status. This action had taken the current stance on the economy into account before making the change. The living standards in Seattle had become expensive. The majority of the staff were unable to afford houses that were close enough to their place of employment, some employees had student loans they could not pay and others found the commute to work expensive. Furthermore, before the appraisal, only a few staff members were able to support their families with the minimum wage salary. Another reason behind his salary hiking was that he intended to bridge the gap that existed between the top 1% families that made approximately $1.6 million annually and the bottom 99% that make just over $ 48,000 per year (PBS Newshour, 2016). Likewise, the Seattle local council agreed that the minimum wages should be increased by approximately $15 per hour of work. Working under this assumption and new regulations, Dan Price opted to gradually raise their salary from the initial minimum wage of $50,000
...
