CEO slashes his pay to give workers a rise

American CEO Dan Price will now earn less than 10 per cent of what he has been, after sacrificing his $US1 million salary to help pay for staff wage rises.

An American CEO has cut his own pay by more than 90 per cent to help cover big rises for his employees.

He hasn't just made his 100-plus workers happy, he's gained new customers, too.

Dan Price is the chief executive of credit card payment processing firm Gravity Payments.

He stunned staff on Monday when he told them he was cutting his roughly $US1 million ($A1.3 million) salary to $US70,000 ($A91,140), and using company profits, to ensure that everyone would earn at least $70K within three years.

For some workers, the increase will more than double their pay.

One 21-year-old mother says she'll buy a house.

Gravity Payments customer relations manager Stefan Bennett says the company is showing people you can run a good, profitable business and also pay staff fairly.

"We've definitely gained a handful of customers in the last day or two," Bennett said.

Price launched the company from his dormitory bedroom at Seattle Pacific University when he was just 19.

He's long taken a progressive approach that's even included allowing his workers to take unlimited paid holidays after their first year.

He concedes his new plan won't be easy - the increased pay will eat into at least half the company's profits and he has no plans to simply raise rates on clients.

"It's up to us to find a way to make it work," he said.


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