By Andy Marken
 |
The CEO and cofounder of a credit card processing company in Seattle wanted to “do the right thing” for his staff, so he:
- Set the lowest salary for everyone in the organization to “a living salary” minimum of $70K
- Made up the difference in the salary spread from his salary (no added financial burden to the company)
It sounds like the right thing for a boss to do, but boy what an uproar it caused:
- Long-time employees thought it was too much of a reward for a kid just coming in because they sure didn’t get it at the get-go.
- A number of valued employees thought the move diminished their contributions to the company and left.
- Some clients figured sooner or later, they’d foot the bill and left.
- A number of CEOs thought it was a rotten precedent.
- His brother, also the cofounder, has sued him.
Compensation—salary, fringe benefits, etc.—has always been tricky. There are guidelines, laws, restrictions, general practices, value of the person, and personal value to consider. In other words, it’s a combination of art and science. And as people climb the corporate ladder, decisions become even murkier.