"US CEO Who Promised 'Cut My Salary for Employees' Resigns Amid Sexual Assault Allegations"

Dan Price, CEO of Gravity Payments (Photo by Price's SNS)

[Asia Economy Reporter Jeong Hyunjin] The CEO of a U.S. venture company who made headlines seven years ago by cutting his own salary to raise all employees' annual salaries to $70,000 (about 93 million KRW) resigned on the 18th (local time) after being indicted on charges of sexual assault against a woman.

Dan Price, CEO of Gravity Payments, a credit card payment processing company based in Seattle, announced in a Twitter statement on the same day, "I will step down to fight against the false allegations against me." He said, "My top priority was to ensure that employees work at the best company in the world, but my continued presence here is becoming a hindrance to the company and the employees." Gravity Payments announced that Tammy Croll, Chief Operating Officer (COO), will take over as the new CEO.

According to The Wall Street Journal (WSJ), Price's resignation came just months after he was charged with assault and reckless driving. Seattle prosecutors charged Price with assault, alleging that he forcibly tried to kiss a woman. He pleaded not guilty in May and has been engaged in a legal battle since. The next trial is scheduled for September 30.

Price is an entrepreneur who attracted attention in 2015 by reducing his annual salary from $1 million to $70,000 and announcing that he would raise the annual salaries of all employees, which averaged $48,000 at the time, to $70,000 within three years. Since then, the salaries of 70 employees at the company increased, and 30 employees in security, call center, and sales positions doubled their annual salaries. Gravity Payments also stated that employee turnover decreased after the salary increase.

The New York Times (NYT) reported after Price's resignation announcement that, based on interviews with more than 50 people and reviews of documents and police reports, he allegedly used his reputation to meet women online, physically and mentally harmed them, and then used his reputation again to cover it up. In response, Price told the NYT, "No one has ever been physically or sexually abused by me," and claimed, "The allegations related to inappropriate behavior toward women are false."