In a story that sounded too good to be true, Dan Price, CEO of credit card processing company Gravity Payments, announced in April that he would equalize all salaries to a minimum of $70,000 a year. He also planned to cut his own $1.1 million salary. A media circus soon kicked off and Price appeared on 25+ TV shows and in mainstream news, including The Today Show and Good Morning America, speaking to the benefits of leveling employee pay.
A lawsuit filed by Price’s brother
, Gravity Payments co-founder Lucas Price, has raised the question of whether this was a true act of kindness or a ploy to gain quick celebrity status. The jury is still out, but what is clear is that due diligence wasn’t done prior to making the “groundbreaking” decision. Now the company is left trying to figure out how to implement the policy and dealing with employee and customer backlash.
Raising a cautionary tale, the Gravity Payments story spotlights the negative consequences of going too far for 15 minutes of fame.
**This post originally appeared in Y&A’s Spark Newsletter