It’s often said that the “road to Hell is paved with good intentions.” This past week, a young CEO, Dan Price, who founded Gravity Payments, a credit card payments processing firm, cut his pay from $1,000,000 to $70,000 and raised the pay of ALL employees making less than $70,000 to that level.
We hear a lot about the hollowing out of the middle class and pay inequality. Is this decision the right way to go about remedying these situations? Not surprisingly, Mr. Price’s announcement was greeted with unreserved joy by his employees and many in the media. Is there another shoe to drop here? Check out the following article that takes an short but thoughtful look at “what Gravity Payments’ $70,000 salary equalization decision REALLY means.”
The author asks some very good questions. Let’s hope Dan Price asked them too before he make this remarkable decision.