PORTLAND, Ore. -- Jaws dropped. And then people started screaming.
In April, Dan Price walked into his Seattle-based company, Gravity Payments, and announced to his employees there would be a brand new pay structure. Everyone at the credit card processing business would now make at least $70,000. And that wasn't all. Price would lose $930,000 in his salary, so his base compensation would match the lowest-paid worker.
Naturally, when I met him at Pioneer Courthouse Square in downtown Portland, I wanted to know if he felt sick to his stomach the moment he revealed his plan. Nope. He was elated.
"It was the best million dollars I could ever spend," Price said.
Actually, it will cost him a lot more than that. Once fully implemented, Price estimates the new $70K minimum wage will reduce his profits from $2.2 million to $400,000.
Still, Price has not regrets.
"A lot of people who were creating our success weren't benefiting enough and I was probably benefiting a little too much," he said.
In fact, he's in Portland for a business summit at Wieden & Kennedy to discuss how other companies can emulate his model.
Watch the video above to hear him explain why he believes profit-centered businesses are in need of a revamp, and what it would take to work for the man some see as the best boss ever.
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