10/12/2025
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In 2015, Dan Price, then CEO of Gravity Payments, announced that he would reduce his own salary from about $1.1 million to $70,000 so every employee could earn at least $70,000 a year.
He and his supporters claim that after the pay adjustment, company revenue tripled, the customer base doubled, and employee retention improved dramatically. Some reports stated that staff turnover was cut in half.
However, some analysts note that details about how the raises were financed were later clarified and that the overall financial impact may have been more nuanced.
Price’s decision has since become a popular example in leadership and business ethics discussions, often cited as a bold experiment in fair pay and employee satisfaction.
Source: CBS News (2022). “Dan Price and the $70K Minimum Wage.”
Source: Wikipedia (2024). “Dan Price.”
Source: Harvard Business School (2023). “Leadership and Pay Equity Case Study.”
