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Pay Gap: Does Gravity Payments's $70,000 Minimum Wage Help?

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Gravity Payments CEO Dan Price Raises Minimum Wage


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Capitalist World's Sore Spot


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US CEOs earn 331 Times as much as Average workers


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774 Times as much as Minimum Wage workers


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US Government's Efforts


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2010 – US Congress directed SEC to require public companies to provide information on ratio of CEO pay to average employee wages.


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Mandate put on hold after corporate executives strongly opposed it.


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Finally approved in August, 2015.


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Gravity CEO Dan Price's Solution To Pay Inequality?


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Raises minimum wage of all employees to $70,000/year


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His inspiration?


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“...The idea to almost double the minimum pay of my employees started after a friend shared how hard it is to pay rent and student loans and make ends meet on a $40,000 annual salary...” Dan Price, CEO.


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To track the pulse of the HR world, or follow up on latest workplace trends, visit our blog at http://cake.hr/blog/


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Skeptics branded Mr. Price as Socialist.


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Divided opinions among staff and clients.


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Partial Employee Support


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Mixed Emotions In Higher Ranked Staff


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Clients' Fears


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Some clients unhappy since they expect to suffer higher charges or poor customer service.


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Clients' Support


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Some remain loyal, while others who share same vision as Price also signing on with Gravity Payments.


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Business Sacrifices


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To enforce this raise, Dan Price reduced his salary from roughly $1 million to $70,000.


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Personal Sacrifices


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Dan Price now leasing his house to make ends meet.


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He's now being sued by his brother, Lucas Price, on charges of ignoring the latter's rights as minority shareholder before making this decision.


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Other Side Of The Coin


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Some claim extent of pay gap problem to be exaggerated.


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Even if only 0.8% of Americans earn Minimum wage according to statistics, CEOs still earn 331 times more than Average workers.


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So, are you with Mr. Price? Or are you part of the other side of the coin?


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