CEO who set $70,000 minimum wage facing hardships

The owner of a Seattle company who announced that he would raise the minimum salary for his employees to $70,000 a year may be facing some struggles of his own.

Dan Price surprised his staff  in April with the announcement that he planned to raise the salary of the lowest-paid employees over the next three years. This included cutting his nearly $1 million-a-year salary to $70,000 and using 75 percent to 80 percent of the company’s anticipated profits this year.

Last month, his brother, Lucas Price, filed a lawsuit alleging that Dan Price violated his rights as minority shareholder in Gravity Payments and breaching duties and contracts. 

Also since the announcement, Price has lost two key employees. His financial manager, Maisey McMaster, and his web developer, Grant Moran, left citing doubts that the new plan would work.

“Now the people who were just clocking in and out were making the same as me. It shackles high performers to less motivated team members,” Moran said to Fox News.

In a New York Times video, the 31-year-old CEO said, " I am renting out my house right now to try to make ends meet myself. I haven’t made this little amount of money since I was in my early 20s."

In April, Dan Price estimated his net worth, including his home, to be about $3 million.

Read more about it here.

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