Do we jump on the $70,000 salary bandwagon?

It might be appropriate to file this under "all good deeds get punished.” 

Dan Price is a 31-year-old chief executive and co-founder-with his brother-of Seattle-based Gravity Payments, which processes credit card payments.

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After reading that $70,000 is the annual income needed to give people financial peace of mind, Price announced that he would raise his workers’ compensation so that everyone earned at least $70,000 and that he would cut his own $1 million-plus salary to that same amount. The savings from Price’s salary and corporate profits would fund the raises.

Good or bad move?

Applauded as a champion in the fight against income inequality, Price enjoyed a lot of complimentary press regarding his decision. But now he is facing a lot of unintended consequences, including:

• The resignation of prized employees who were reportedly angry that marginal, inexperienced workers now earned the same amount or close to the high-performing employees.

• Loss of other key employees who, when raising their concerns about the new plan, were not listened to but criticized for being greedy.

• A lawsuit from his brother, owner of 30% of the company, claiming that Price enriched himself (net worth of $3 million) while the cofounder brother did not financially benefit.

• With the company's earnings committed to the new compensation plan, the company lacks resources to fight the lawsuit and, according to Price, the survival of the company is threatened.

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So how this story will play out is uncertain.

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