In 2015, Dan Price, then CEO of Gravity Payments, did something almost unheard of in corporate America: he cut his own salary dramatically — from roughly USD 1.1 million to just USD 70,000 — so that every employee at his company would earn at least USD 70,000 per year. 

His rationale was simple but profound: he believed that workers should have enough income to live with dignity, reduce financial stress, and focus on doing good work without anxiety over basic expenses. Price argued there was a “moral imperative” in narrowing the wage gap within his company. 

At the time, many reacted with shock: some business commentators called the move “lunatic,” while others accused him of indulgence or even socialism. But the decision turned out to be more than a publicity stunt — it was a bold experiment in values-driven leadership and long-term business thinking.

Once the new pay structure was communicated, the response among employees was telling: stunned silence initially, then cheers, hugs, and relief. The raise roughly doubled the income for around 30 employees and increased pay significantly for many others. 

In the years that followed, Gravity Payments not only survived — it thrived. According to interviews and media reports, the company’s employee retention rose, many longtime employees stayed on, and new clients came in. Productivity and revenue reportedly increased substantially over baseline, demonstrating that employee well‑being and company performance can align. 

For some employees, this raise meant concrete improvements in life — no more juggling multiple jobs or worrying about rent or debt. For many it restored dignity, stability, and hope. 

Importantly, Price’s move sparked broader conversations about pay inequality, corporate responsibility, and what “fair compensation” really means. His public stance inspired other business leaders to reconsider traditional pay structures — and gave renewed weight to debates over living wages. 

Critics remain — some argued the model isn’t scalable to larger corporations or more competitive industries. Others pointed out that the move risked alienating high performers or creating internal tensions. 

However, the experience of Gravity Payments under Dan Price’s leadership remains one of the most compelling real‑world examples in favor of higher worker wages fueling — rather than undermining — corporate success. It suggests that when employees are paid enough to meet their needs, they are more loyal, more motivated, and better able to contribute to a company’s long‑term growth.

In a business environment often dominated by cost‑cutting and maximizing shareholder returns, Price’s bold gamble offers a different vision — one where empathy, fairness, and human dignity can coexist with profitability and growth.

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Select additional sources for further reading:

• The Guardian — “Dan Price: the CEO who took a pay cut to give his staff a $70k minimum wage” CNN Money — “CEO takes 90% pay cut to give workers huge raise”

• CBS News — “Dan Price, CEO of Gravity Payments, on why giving employees $70,000 minimum salary works”

• Bloomberg Businessweek — “The CEO Paying Everyone $70,000 Salaries Has Something to Hide”