Dan Price, the founder and CEO of Gravity Payments in Seattle

Dan Price, the founder and CEO of Gravity Payments

One business owner takes a stand on inequality. Founder of Gravity Payments Dan Price slashes his own salary in order give his employees a raise.

One Company’s New Minimum Wage: $70,000 a Year

The idea began percolating, said Dan Price, the founder of Gravity Payments, after he read an article on happiness. It showed that, for people who earn less than about $70,000, extra money makes a big difference in their lives.
His idea bubbled into reality on Monday afternoon, when Mr. Price surprised his 120-person staff by announcing that he planned over the next three years to raise the salary of even the lowest-paid clerk, customer service representative and salesman to a minimum of $70,000. […]

If it’s a publicity stunt, it’s a costly one. Mr. Price, who started the Seattle-based credit-card payment processing firm in 2004 at the age of 19, said he would pay for the wage increases by cutting his own salary from nearly $1 million to $70,000 and using 75 to 80 percent of the company’s anticipated $2.2 million in profit this year. […]

Mr. Price’s small, privately owned company is by no means a bellwether, but his unusual proposal does speak to an economic issue that has captured national attention: The disparity between the soaring pay of chief executives and that of their employees. […]

Of all the social issues that he felt he was in a position to do something about as a business leader, ‘that one seemed like a more worthy issue to go after.’ […]

— Patricia Cohen, The New York Times

Sen. Bernie Sanders Congratulates Dan Price

%d bloggers like this: