Dan Price, CEO identified for giving raises, quits after rape investigation

Dan Price, who gained quasi-stardom after elevating his workers’ salaries to at the very least $70,000 whereas chopping his personal pay, has resigned as chief government of Seattle-based Gravity Funds after a rape allegation in Palm Springs just lately got here to gentle.

Price, who based the corporate that processes bank card funds, announced his resignation on Twitter final week.

The 38-year-old is accused of raping a lady in Palm Springs in April 2021, the second public allegation towards him of violence towards girls in recent times. In keeping with an investigation by the New York Occasions, the 2 incidents observe years of alleged predatory conduct and abuse by Price, together with accusations from his ex-wife of home violence — whereas his prominence grew as he touted the revolutionizing of huge enterprise with progressive insurance policies.

Investigators with the Palm Springs Police Division submitted the rape case for assessment to the Riverside County district lawyer’s workplace final week, in line with Lt. Gustavo Araiza. He declined to launch any additional particulars of the report, citing an energetic investigation. Araiza stated an arrest warrant could also be issued after prosecutors assessment the case.

John Corridor, the spokesperson for the district lawyer’s workplace, stated the case “is currently under review and no filing decision has been made at this time.” He declined to offer a timeline for that call.

In keeping with the New York Occasions story, Palm Springs police really useful a cost of rape of a drugged sufferer after a lady reported that Price sexually assaulted her with out her consent whereas she was asleep at a Palm Springs resort.

Price didn’t instantly reply to a request for remark however referred to as the allegations towards him “false accusations,” in a statement on Twitter. In the identical submit, Price introduced his resignation as CEO.

A request for remark from Gravity Funds was not instantly answered.

“My presence has become a distraction here. I also need to step aside from these duties to focus full time on fighting the false allegations against me,” Price posted on Twitter. “I’m not going anywhere.”

In February, Price was charged with fourth-degree assault with sexual motivation, fourth-degree assault and reckless driving in Seattle after a lady accused him of forcing undesirable kisses on her, then grabbing her by the throat when she refused, in line with the Seattle Occasions. He just lately pleaded not responsible to the misdemeanor assault and reckless driving costs; prosecutors dropped the cost of assault with sexual motivation.

Price rose to fast fame in 2015 after deciding to lift his workers’ beginning wage to $70,000 to deal with the massive revenue hole between him and his lowest-paid workers and supply a residing wage. He was making $1 million a 12 months on the time, he stated, whereas the bottom earners at his firm had been averaging about $35,000. He took an nearly 93% pay minimize to make the raises for his workers occur — a transfer that went nearly immediately viral.

Price grew to become the topic of a media frenzy, featured in dozens of exhibits and articles, together with on NBC’s “Today” present and NBC Information and within the Los Angeles Occasions, for his goodwill and revolutionary pay construction. He was referred to as a “crusader for income inequality” by Inc. Journal and a “capitalist fairy tale” by Bloomberg.

Price has continued to tout his choice, calling it not solely a morally proper transfer but in addition good for enterprise, citing decrease turnover charges, the corporate’s progress and lots of of keen job candidates for any open positions.

Price named Tammi Kroll, Gravity’s chief working officer, the corporate’s new CEO.