CEO Who Set Minimum Wage at $70K is Swamped With Business Now

CEO Who Set Minimum Wage at $70K is Swamped With Business Now

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Dan Price-CNNvideo

You’ve got to spend money to make money and a generous CEO is making a lot more money a week after he invested in his employees. The company, Gravity Payments, has been flooded with new business since CEO Dan Price announced he’d raise every one of his employee’s pay to $70,000 a year — and slashed his own annual pay from $1 million to the same $70,000.

“I’m actually shocked by the reaction from businesses,” Price told CNN Money. “It has me on cloud nine.”

Price says the credit card transaction processing company he founded has recorded the best week for acquiring new clients in the 11 years since he founded it. He says dozens of new clients have signed on with the company and he’s thinking about expanding his staff to 120 people.

Good News Network reported last week Price announced he was raising the pay of 70 of his workers after reading a study on how having extra money made a difference in the lives of people earning under $70,000 a year. The raise doubled the salaries of 30 workers.

And more people want to work for his company. Gravity Payments received 3,500 job applications in the past week for two open positions — roughly five times what they usually get for an opening.

(WATCH the interview with Price from CNN)

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