Four months ago, the CEO of Gravity Payments Dan Price revealed a plan of offering a salary of $70,000 to even most junior employees of the company. The controversial policy was appreciated by a number of employees, however it also led to some adverse reaction.

After this announcement, two employees of the company resigned, in addition to a few clients. The plan is also criticized by opponents from politics.

However, Price believes that he made the right decision. According to Price, this has been a road with many problems and there have been big challenges, however his resolve is more helpful than what he had thought. He added that he is satisfied regarding their take on the challenge.

Price thought of increasing his employees' salary following he went through a study concerning happiness. It was said in the study that income increase up to a salary of $75,000 a year could lead to considerable difference in emotional well-being of an individual.

As per reports, over the next three years, approximately 70 of the company's workers will have their salary increased to $70,000. And almost 30 of those workers will get double salary. Price also decreased his own salary from almost $1 million to $70,000, in an attempt to help pay for hikes in other salaries.

According to Price, "If we're actually able to pay everybody enough that they can live a normal life, within a mile or two of our office, then to me, there is a moral imperative to create some standard, some [salary] floor".