Dan Price is the CEO of online credit card processing company Gravity Payments, in 2015 he cut his salary by 90 percent and allowed a minimum salary of $70,000 per year for Employees, now Dan earns a salary of $70,000 USD per year. His decision was quite a surprise, in 2015 there were around 130 Employees working in his company and now there are around 200, his decision has worked out for the best. On April 13th, he took to Twitter and wrote “6 years ago today I raised my company’s min wage to $70k. Fox News called me a socialist whose employees would be on bread lines. Since then our revenue tripled, we’re a Harvard Business School case study & our employees had a 10x boom in homes bought. Always invest in people.”
Later, in the series of Tweet, he wrote “Since our $70k min wage was announced 6 years ago today: Our revenue tripled, Headcount grew 70%, Customer base doubled, Babies had by staff grew 10x, 70% of employees paid down debt, Homes bought by employees grew 10x, 401(k) contributions grew 155%, Turnover dropped in half.” Then, he added, “After our $70k min wage: 76% of employees are engaged at work, 2x the national average, Customer attrition fell to 25% below nat’l average, We expanded to a new Boise office & enacted $70k min wage there, Our highest-paid employee makes 4x our lowest-paid employee, down from 33x.”
“We started our $70k min wage with about 130 employees in Seattle. It worked so well we expanded it to a new Boise office, where the cost of living is lower but people deserve good pay all the same. We now have about 200 employees.”
“At the start of the pandemic, we lost 55% of our revenue overnight. Our employees were so invested they volunteered to take temporary pay cuts to prevent any layoffs. We weathered the storm, paid everyone back, and are now giving out raises.”
The 2010 case study by Angus Deaton and Daniel Kahneman claimed that a salary past $75,000 could buy life satisfaction, but not happiness, Dan got inspired after reading this case study. Furthermore, the study revealed that Happiness rises with income but only to a certain point. Dan spoke with a friend and she believed that the salary of $70,000 would help her to pay rent and raise her son, then this inspired him to take the decision to cut his salary by 90 percent from 1.1 Million to $70,000 USD per year. Now, his company has around 200 happy employees.
37 years old
$800k to $1 Million USD
5 feet 9 inches tall
From 2010 to 2015, he earned a salary between $700K USD to $1.1 Million USD, in 2015 he made the decision and reduced the salary to $70,000 USD per year. According to the report conducted in 2019, the average salary of the CEOs is $21.3 Million a year. However, Dan revealed that he sold all his stocks in 2015 and even mortgaged his two properties including a $1.2 million home in Washington, and poured the $3 million he raised into Gravity Payments. But in the same year, he landed a $500,000 book deal to be published at Penguin Random House imprint Viking. Only calculating his salary and the above deal, the Net Worth of Dan Price is between $800k to $1 Million USD.
In 2007, Dan tied the knot with Kristie Colón and they were married together until 2012. Price Ex-wife Kristie revealed during a TEDx talk at the University of Kentucky about her experience with domestic abuse but never mentioned her Ex-Spouse name. Initially, The University of Kentucky didn’t release Kristie Colón recording, but after facing criticism they reversed the decision and released the recording of Kristie Colón talk. Furthermore, she stood by her accusation of Dan Price in a blog post published in Jan 2016.
(Image Source: Dan Price Instagram)