How a Million-Dollar Pay Cut and a $70,000 Minimum Wage Revealed a Better Way of Doing Business
by Dan Price — CEO of Gravity Payments
Dan Price gained worldwide attention in 2015 when he announced a $70,000 minimum wage at his company and would slash his $1 million salary in order to pay for it. While many praised the decision as a bold step toward combating income inequality, others vilified Price as a radical socialist whose “experiment” was doomed to fail.
But behind the headlines and controversy lay a much more nuanced and personal story—a story of an entrepreneur who realized he could no longer claim to be upholding his values if he continued to pay his employees anything less than a living wage. How could a company dedicated to helping small businesses fulfill its mission if the people responsible for helping those businesses were struggling to meet their own basic needs?
In this book, Price shares the experiences and events that shaped his decision—from his conservative, Christian upbringing in rural Idaho to the milestones that made him rethink the true purpose of business—and shows how taking a huge risk ultimately helped his company become more resilient and competitive. Calling on leaders to set and execute on their own purpose-driven visions, Price forces readers to question traditional market-centric business wisdom in favor of a more human—and much more sustainable—approach. It’s not easy, he argues, but in the end, the rewards will be worth it.
“At a time of massive wealth and income inequality in our country, Mr. Price sets an example that other companies should learn from.” —Senator Bernie Sanders
“A small Seattle company shows that capitalism can have a heart.” —Nicholas Kristof, New York Times
“The Dan Price Pay Experiment will either be hailed as a stroke of genius showing that entrepreneurs have underpaid their workforces to their companies’ detriment, or as proof positive that Gravity is being run by a well-intentioned fool.” —Inc.