Business Owner Raises Minimum Wage to $70,000 By Cutting His Own Salary

SM Gibson
April 14, 2014

(ANTIMEDIA) The founder & CEO of Gravity Payments, a Seattle-based credit card processing company, made an abrupt announcement to his 120-person staff last week. All employees will now be  making a minimum of $70,000 a year.

Dan Price called a company meeting after reading an article about how earnings have a powerful effect on one’s outlook on life. The story concluded that although money does not buy happiness, it does offer satisfaction when one thinks about their own life and lowers stress.

Price, who founded Gravity in 2004 at the age of 19, explained to his workers that he will be raising the annual salary of even the lowest paid member of staff to $70,000 over the next three years by cutting his own pay from almost $1 million a year to $70,000. The entrepreneur said he also plans to use 75 to 80 percent of his company’s $2.2 million in profits to help cover the blanketing raise.

“Is anyone else freaking out right now?” Mr. Price asked his associates as the roar of their applause dwindled. “I’m kind of freaking out.”

About 70 members of staff will see a rise in pay while 30 employees will find their paychecks double once the pay increase takes effect.

Currently, the average yearly income at Gravity is $48,000.

“The market rate for me as a C.E.O. compared to a regular person is ridiculous, it’s absurd,” said the 30-year-old owner.

Mr. Price’s actions have perfectly demonstrated how it is possible to take care of others outside of the  nagging interference of government when you put people over greed.


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Author: S.m. Gibson

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24 Comments

  1. Cutting his pay from 1m to 70k…something sounds fishy..

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  2. Finally someone who gets it. I can only imagine his employees will be totally committed to doing a good job for this guy.

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  3. You have to believe in magic, otherwise your whole life will have a smell! ;-)

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  4. Sorry Mathias either he was rich to begin with or there is a hidden agenda. You keep believing in your magic; I hope it's working out for you.

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  5. Interesting. See if he keeps his word on that. I'd say if he does = work then no big deal. But i'd resent it if I did more work and got paid the same money.

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  6. It does say however that he is only doing this for the first 3 years. So maybe its just a study they are doing first. Then they might give all these employees a medical exam to further validate the health benefits of low stress as well as maybe give us a better insight to equality standards.

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  7. Could be he has a stash of cash. Maybe he has everything he needs. Maybe he's earning through another venture. Whatever the story behind the curtains, a bunch of people are going to be taking home a lot more cash, which is rather nice.

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  8. Alex Louismet, I interpreted that as the company is raising it "over the next three years", meaning it will take three years to get the employees to $70,000. In other words, it will take three years to get the kinks worked out. I don't think he was saying, they are going to test it out for three years and then possible decide it didn't work. Maybe though.

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  9. He's made millions he's just trying to make his employees happy

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  10. He's made millions he's just trying to make his employees happy

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  11. Zubair Amin ;

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  12. Make them happy to retain the talent, I don't see anything nefarious there – he wants to be able to keep the best people and he knows that money talks. It can be a win for the company and for the employees at the same time. Churn is expensive and helps nobody!

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  13. It's always good to be a skeptic. Ask questions keep investigating and don't forget. All in all even if there's an ulterior motive, people are still going to be better off, we need more people in the middle class in america, so if every company did this with something else in mind it would stimulate the economy more. Well then, you would see your friends yourself, and your family making 70k a year, do you think this would be a bad thing? It could lead to bad, but so far it looks good.

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  14. He's the owner of the company. He is just taking a smaller salary which means the payroll is less. Since he owns the company he still makes money, but takes a smaller guaranteed salary.

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  15. He's the owner of the company. He is just taking a smaller salary which means the payroll is less. Since he owns the company he still makes money, but takes a smaller guaranteed salary.

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  16. Bravo Mr Price!!!

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  17. Bravo Mr Price!!!

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