Please read the case study, Gravity Payments: Minimum Wage is a Heavy Load by Lin Tao and Tim Summers, published by Harvard Business Publishing.

Questions for analysis

Gravity's pay policy is unconventional. How would you expect it to influence the long-term motivation of a) a telephone sales worker, b) an executive in senior management, and c) Price himself?

The legal dispute between Gravity and Dan Prices brother Lucas stems from Lucas position as a minority shareholder. How might these differences have arisen and how can they be resolved?

What pressures would other businesses feel to copy Prices pay strategy if they were (a) small and privately owned, or (b) large and listed?

Using Equity Theory as a theoretical lens, consider the reactions of an entry-level employee; then of the managers who were already being paid more than $75,000. Be sure to fully describe equity theory and how it applies to this situation.