Case | HBS Case Collection | August 2015 (Revised March 2017)

The $70K CEO at Gravity Payments

by Mitchell Weiss, Michael I. Norton, Michael Norris and Sarah McAra

Abstract

In 2015, Gravity Payments CEO Dan Price took a massive pay cut to raise the minimum wage at his company to $70,000 annually. In the wake of a national discussion of wage equality, he was met with cheers and jeers. The company hoped that the unorthodox move would, through a range of levers, cover the increasing costs of compensation. Did Price make the right move? Would Gravity thrive or even survive?

Keywords: wage gap; "credit card processing"; CEO pay; inequality; Human Resources; Compensation and Benefits; Human Capital; Wages; United States;

Citation:

Weiss, Mitchell, Michael I. Norton, Michael Norris, and Sarah McAra. "The $70K CEO at Gravity Payments." Harvard Business School Case 816-010, August 2015. (Revised March 2017.)