Dan Price , the CEO of Gravity Payments , is slashing his own salary 93percent . The CEO of a Seattle startup has instituted a $ 70,000 minimum wage at his credit card processing company - and he 's paying for it by slashing his $ 1million salary to the same as his lowest-paid worker . He 's also taking up to 80percent of the firm 's $ 2.2million expected profit to plow it back in to staff salaries . Over the next three years , Gravity Payments will offer at least $ 70,000 salary to all of its 120 employees - even the most junior customer service representatives and clerks , CEO Dan Price told the New York Times this week . 'Is anyone else freaking out right now ? I ’ m kind of freaking out , ' he told his cheering employees at a meeting on Monday afternoon . The policy will raise the wages for 70 of the company 's workers - more than half the staff . The Times was present at Price 's announcement . Even if the $ 70,000 minimum wage is a publicity stunt , it 's one that will cost him big time . Price is slashing his own salary by 93percent - more depending on what portion of the company 's profits he was planning to take home . Price founded Gravity Payments in 2004 when he was 19 and working out of his dorm room at Seattle Pacific University . The company processes credit card payments for small businesses . Price said told the Times he was motivated to make the radical change after reading a study about how much pay raises increase happiness for people making less than $ 70,000 a year . He also was distressed hearing the struggles of his friends and family who make far less money than he does . Happy workers : Price said the move will eat up 93percent of his current salary and 80percent of his annual profits . 'They were walking me through the math of making $ 40,000 a year . ' ... I hear that every single week . That just eats at me inside . ' The move comes at a time when CEO pay is 300 times the average employee pay at large companies - among the highest level of inequality in history . Price claims he 's a man of few vices . He takes snowboarding trips and likes to pick up the tab at dinner and when he 's out with friends . Otherwise , he says , he drives a 12-year-old Audi .
Dan Price , founder of Gravity Payments , will raise his salary to $ 500 and raise the minimum wage for his 120 employees to $ 70,000 . The move , in the next five years , will also allow Price to plow up to 80percent of his firm 's $ 1000 salary back into salaries . He says he was inspired to make the bold step after reading that happiness increases dramatically for people earning over $ 70,000 .