In 2015, this CEO reduced his own wage from $1.1 million a year to $70,000 so he could implement a minimum salary of $70,000 for all his employees. When the pandemic hit, the employees proposed pay cuts, ultimately saving the company. How it happened: torstar.co/ZHGg50COkYr
In early April, Dan Price, one of the company founders and its CEO, convened the 200 employees for an urgent Zoom call, sharing with them the fact that the company was burning $1.5 million a month in cash. thestar.com/business/opini…
If it continued like this and no action was taken, Price warned, the company would run out of cash in just four months. Price declared that he has no intention to fire any employee, but he had to come up with a solution, and fast. thestar.com/business/opini…
After several options such as cutting wages across the board, and raising customer fees were reviewed, an employee raised his hand and made an original proposal. Each employee will anonymously write down the percentage pay cut he was willing to absorb for the coming months.
Price first thought the proposal had no chance, that it was a waste of time, and that each employee would expect the others to agree to a larger reduction, but he decided to give it a chance. thestar.com/business/opini…
When he got the numbers, he was amazed at what he saw. Read more here: thestar.com/business/opini…
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