Gravity Payments CEO Dan Price resigned amid legal trouble

Gravity Payments CEO Dan Price resigned amid legal trouble

Gravity Payments CEO Dan Price resigned amid legal trouble

Dan Price, co-founder and CEO of Gravity Payments, a Seattle-based credit card processing company, has officially resigned. shared in an email to the company today. COO Tammi Kroll will take over as CEO.

The price first made headlines, and the cover of Inc.–in 2015, when he announced he would take a substantial pay cut, from $1.1 million to $70,000, to establish a minimum wage of $70,000 at his company. In the years that followed, Price had legal problems, including allegations of abuse. This, Price said in his resignation email (posted on Twitter), made his presence at his company “become a distraction,” leading to his decision to resign and “focus full time on combating false accusations.” ” against him.

In 2016, Price’s brother and Gravity Payments co-founder Lucas filed a lawsuit against the then CEO. Lucas claimed that prior to his famous pay cut, Dan paid himself “overcompensation” and violated his rights as a minority shareholder. A judge ruled in Dan’s favor.

In October 2015, Price’s ex-wife, Kristie Colón (née Lewellyn), gave a public talk at the University of Kentucky, in which she alleged abuse by her ex-husband (without explicitly naming Price). In December of that year, when questioned by a Bloomberg Business Week reporter about the allegations, Price denied them.

Earlier this year, the seattle times reported that a woman accused Price of trying to kiss her and forcibly grab her throat after a business dinner. In May, Price pleaded not guilty to misdemeanor assault charges. The judge entered an anti-harassment protection against Price, which prevented him from contacting the alleged victim and coming within 1,000 feet of her. A representative for Gravity Payments and Price could not be reached for comment at this time.

Since launching into the national spotlight in 2015, Price has remained a fixture in the world of thought leadership. In 2020, Gravity Payments saw its annual revenue drop by nearly 50 percent. Price called meetings with employees on how to respond; each employee chose to take a voluntary pay cut, with Price opting to forgo his salary entirely. According to Price, this allowed the company to avoid laying off 20 percent of the staff.

Today, Gravity Payments pays employees a minimum salary of $80,000, Price said in a statement he shared on Twitter after announcing his resignation. He also pointed to Gravity’s success benchmarks, including that the company has avoided laying off a single employee in its 18-year history and that it receives “300 applications per job opening,” despite a lack of publicity. “I am proud of what we have done,” the founder wrote.

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