Publications
Publications
- August 2015 (Revised March 2017)
- HBS Case Collection
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.)