What Happened When CEO Dan Price Took A $1 Million Pay Cut

-And you might remember my next guest because not long ago, I featured him in one of our "What I Like" segments and I fell in love with him. This wonderful man gave raises to all of his employees. Now each of them is guaranteed to earn at least $70,000 a year. And that's not all. In fact, he cut his own salary by $1.1

million

to match the salary of his employees. That, nobody does that. - Nobody does that, right? - Like

what

? Here's the last time he was on our show. - And then I realized that a third of the people in my company that I founded, which I owned, made less than

what

my friend Valerie made.

And that was just heartbreaking for me. And I felt strongly about it, and I promised him during the hike, on top of a mountain, that he would find some way to have a $70,000 minimum wage for everyone at Gravity. (applause) And a few weeks later, I announced it. About a third of the people had their salaries doubled... - Okay, we have to invite you to this program and talk more about this. This is not enough, Dan. You just made an impact on me and everyone here and everyone who will watch this show. Thank you so much. Well, I told him I wanted to meet him in person and today is the day.

Please welcome Gravity Payment CEO Dan Price and the woman who inspired him, Rosita Barlow. (applause) Oh my God! Okay, Rosita, take us back to where you were before the surge. - I was, you know, working on Gravity and I loved it. I loved the work, but I couldn't make ends meet. I could barely cover my expenses. So I started working at a fast food restaurant full time in addition to working on Gravity, and even then, I was still struggling. I was in survival mode at that point. But I really didn't want Dan to find out because I was afraid I'd get fired for working two jobs.

But, you know, they offered me at the restaurant to do some training and I accidentally left the book in the office and he saw it and called me into the office and I thought they were going to fire me right away. - This is horrible. - Was. And he came in and just said, “Do you know what it takes to have a better work-life balance?” "What does it take to leave the other job?" And I wanted him to think about so I went back and gave him a number, and then he said, "Let me...", you know, "Give me some time to think about it." And he came back and said, "All right, let's do it." "We'll give you a raise," and...", you know, "I want to be able to have a sustainable life for you." "So let's do it." - That's very thoughtful. - And he gave me the raise and I left the job. , and I mean, I've been so grateful ever since. (applause) - Oh my God, that's an unreal story (applause) Like this is the second time I've heard it and my mind is still like (makes a sound. explosion) that doesn't happen.

Although it should. So, Dan, how did Rosita's story affect you emotionally, for example, where you made that change - Well, she's very hardworking, you know, and she puts everything into it? what he does, and there are a lot of people like that while I'm learning. But to see it firsthand, to see someone who undoubtedly deserves a living wage, who deserves to be allowed to have health, a balanced lifestyle and enough resources to live on. a good normal life. You know, she is someone who inspires me because I saw that she was not being given that

when

she, without a doubt, deserves to have it. - Wow.

I will work for you. (Laughs) I say, "No boss sounds like that." That is incredible. - Well, it's a great business decision for us because... - But you extended it to others, to all your employees. - We do it because we all know how health affects our performance at work and we know it intuitively, and we believed this lie that not having enough money is a character defect. It is not. In reality,

when

you figure those things out, when you earn enough to pay your expenses, to have a good, healthy life, you perform better at your job, just as you perform better when you sleep better, when you eat better, you do things to create the life you want and be able to make a difference through your work. - Yes, a stable and healthy life. (applause) That's great.

And one of my questions was how has it affected, first, her business and second, the people in the workplace? Because people who are happier and maintain a better lifestyle and something that is good, especially with children, they think, you know, how has all this affected? - So before our minimum wage of $70,000, people, of course, were a little stretched. Before that time, between zero and two babies were born per year at the company. - Wow. - Since its implementation we have had more than 40 babies born in just over four years. - People say (singing) "We have a raise!" (laughter and applause) They say, "Yes.

I can afford to have a child in diapers." - Not only that, people are buying houses. - Oh I love it. - We have seen our voluntary savings rate almost double through our company 401K. All these shows, where everyone was telling me, "Oh, everyone's going to waste their money," that's not true. People have used money to improve their lives. - Boosts the economy. They are spending... yes, yes. - And the company has more than doubled in size. We have 70% more employees. We are at 250%... (applause) - That's because they've heard about you. They said, "Where the hell what are you doing?" "I do that too.

I want to do that." Not long ago, Dan decided to raise the salaries of all of his employees to a minimum of $70,000, cutting his own $1.1

million

annual salary in the process. Crazy and amazing. It has had a great impact on all of his employees, including our next guest, José García. Leave it for José right now. (applause) With this rock and roll hair, I love you. So how long have you been on Gravity and how has the rise changed your life? - I've been, I like to round up, so I would say, six years, but it's like five and a half.

And the immediate impacts were great. I had to move to an apartment that was much closer to work. I went from a 30 to 40 minute ride with traffic to a six minute ride with traffic. - Wow. - Yes, it was crazy. Like the immediate effects were great. I bought trinkets, things, it's just the mental health part that was like, Oh, I can do these things that I wanted to do. But, um, unintentional, it could have been unintentional, I don't know. You're smarter than me, but (laughs) the unintended consequences were really the biggest ones for me. Because I have to do all kinds of things.

I had to do Jiu Jitsu, kickboxing, rock climbing, break a finger. (laughs) - I was going to say that I just noticed your hand. I say, how are you? - Jiu Jitsu, yes, yes, yes - Oh, okay. - I got into a fight... - You like it. - I know. I love it. I love it. - He's blaming me for the broken hand. (laughs) - Yes, more or less. Yeah, it's practically Danny's fault. (laughs) Yeah, I had to get rid of a 15-year-old car and I was worried if it would break down. - Yes. - Climb a snow hill.

The snow was new to me. I've never dealt with that. So, buying a car, peace of mind. So for me, the unintended consequences were actually the biggest ones, where I was like, oh, I didn't realize how much of my day-to-day life was like, okay, great, am I going to do it? eat? Or am I going to pay for gas? - Friend, I remember that you would have to choose. - Yes Yes. - Am I going to pay this bill or do I want water? And can I shower in my gym? (laughs) - Well, the thing was that José was helping all of our small business clients.

Because what we do is a little boring. We basically create software that helps small businesses keep up with Amazon and Starbucks because we... - That's not boring. That's great. - Yes. - Well, we love the little guy and the little guy who owns a small business. That's what motivates us and José, during the day, he is so passionate. He's helping all these small business owners, but in the back of his mind, he told me later, was stress. And then all of a sudden you eliminate that stress and he can dedicate 100% of our focus and attention to these small business owners. - Yes. - Since then, he was promoted.

He has changed jobs. Rosita too. So it really opens up that creativity when you eliminate stress. - Yes, amen. I hate stress. Oh Lord. (applause) He is killing us. I just want to point out one more time. It's like what director Christian, who's up there, said: "It's an opportunity." Timing is everything. It gives you hope. -The opportunities that Dan has given me have allowed me to do crazy things that I would never have imagined. I was able to fly to Germany to speak on behalf of the company. I've spoken at Harvard, which is crazy. I was on a show once.

Oh, we're here, right? - Oh, (laughs) yes! Oh, you're funny. You have jokes. (laughs) You have jokes. - Those opportunity things, you know, I was this person. He really wasn't anyone. I was just this kid and because of the opportunities that Dan gave me, I feel like I've grown and learned and been able to do a lot of things, so thank you. I appreciate everything. (applause) - That's great. (applause) -And I don't know if you can get close to this brother, but he has the most beautiful freckles in the world on his face. (laughs) With that mohawk and freckles, I mean you are every mom's dream. (laughs) - José also has posts on social media: "What did I do to be like Batman today?" Because he is focused on his health. (Kelly laughs) So every day he posts what he did to become Batman and does the best exercises, meditation and health practices. - That's so cool.

That's very good for you. It is very inspiring for the entire team. - Thanks to this, I have been able to lose some weight since I started. - And take some time for yourself. Personal care. - Absolutely. It was like a hundred and something pounds. It was a little... - What? Oh my God! - Yes. - I love how casual you were about it. (laughs) That's amazing. - And those are, as I said, the unintended consequences. People think about money, and yes, it's useful, but really these things where it's like, oh, I can do this, I could invest in myself, is what's happening. - Yes. - Yes, it's pretty good. - That is incredible.

So what's next for his company? What's next for Gravity? - Well, for me, I'm focused on being the best son, brother and uncle I can be and I really try to connect on a relationship level. Yes, because, to me, that's what matters. And, you know, I'm working on myself because the most important thing for me is to be like a great husband and father someday and that's why I'm working on myself... - Are you saying you're single? - Hey, well. - Ladies. (laughs) Let me talk to the world right now. (laughs) You want to be in his presence.

Want. I can't believe you're single. - I have work to do, so throughout my... - Oh my God. You are a good guy. (laughs) Thinking internally? Like what? -Lionel and I want to be in his presence. (laughs) - Wait, wait, wait, what are you talking about? (Laughs) - As if all gay women and men say, "Yes." (laughs) - During my teens and twenties, I worked 16 and 17 hours a day building this company. That's why I had to take a little time and try to live a healthy lifestyle. And that made me reflect inward and want to get to the right place. - You are practicing what you preach. - Yeah.

I'm trying and then... - Yeah. - It looks good and people always say, "Oh, the best boss in the world" and all that kind of stuff, but, you know, we all have a lot of work to do. do. And we all know it. - Amen. - We need to be better for each other. That's really it (applause). And better for ourselves. (applause) Yes. I mean, if you need help, we'll help you back. (applause) We have a blind date segment (laughter) where you can use my voice chair, just saying. I will connect you. (laughs) - This is amazing.