Gravity Payments, Inc.: Setting the World or Itself on Fire?
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Date
2018-12-01
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Abstract
Dan Price, the founder and CEO of Gravity Payments, Inc., decided to give his employees raises—big raises. He announced that all employees would make a minimum of $70,000 (phased in over a three-year period). Some were only making $35,000 at the time, and the change would effectively double their salaries. The employees were ecstatic and Price made national news. In addition, Price decided to reduce his nearly million-dollar salary to just $70,000 and use a significant portion of the company’s anticipated $2.2 million profit per year to pay for the raises. The case poses questions about pay equity, equality and justice, employee motivation and the impact of internal company decisions on stakeholders.
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Bryant, S., Wong, K. (2017). Gravity Payments, Inc.: Setting the World or Itself on Fire? Journal of Case Research and Inquiry 3: 13-