Gravity Payment(ABP)

Halimatu Adams Written by Halimatu Adams · 1 min read >

COMPANY OVERVIEW: GravityPayments is a payment processing company founded in 2004 by Dan Price in Seattle, Washington. The company offers credit card processing and payment services to small and medium businesses. In 2015, Gravity Payments made headlines when its CEO, Dan Price, announced that he would be raising the minimum salary for all employees to $70,000 per year, regardless of their job title or experience level. This decision was motivated by Price’s desire to address income inequality and to create a more equitable workplace.

The announcement raised both praise and criticism. Some saw it as a bold move that demonstrated a commitment to employees and a recognition of the value of their work, while others criticized it as unsustainable and potentially damaging to the company’s.


One of the main problems that Gravity Payments is faced with is the aftermath of implementing its $70,000 minimum salary structure and the potential impact on the company’s financial stability. Critics argued that the policy was unsustainable and that it would lead to increased costs that could not be offset by higher revenue.


Have a structure and equitable way to address income inequality while balancing the interest and concerns of all stakeholders, (employee controversies, the resulting lawsuit). Overall, the $70,000 minimum salary policy was intended to align the company’s financial success with the well-being of its employees and the communities it served.


Should dan price continue paying the recently implemented $70,000 minimum salary at gravity payment or should he review the wage structure based on the equity theory (paying employee a fair wage based on their contribution)


Sustainability /cost implication: can dan price sustain the payment of$70,000 base salary.

Fairness: Any alternative dan price takes has to address his employees that feel the wage increase was unfair to them. This alternative has to be livable salary that can provide his employee with a decent life.

Company reputation: any alternatives he chooses will affect the way our customers and competitors perceive gravity payments, which can in turn lead to a change in revenue.

Stakeholders’ relation: price decision will help him navigate the issues with stakeholders.

Since this salary increment has led to the removal of 75% shareholders equity any decision, dan price must consider the position/interest of lucas price (a shareholder)

Decision: dan price should review the wage structure at gravity payment based on equity theory.

Proposed action plan: Device an equitable metric for wage increment that takes into consideration value of employees.

Seek out the opinions of all shareholders on how to achieve his goals before executing.


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