A Seattle CEO has cut his own salary by more than 90 percent and bumped up his employees' wages in a move he calls a "moral imperative."

Dan Price, the founder of Gravity Payments, surprised his 120-person staff by announcing that he planned over the next three years to raise the salary of every worker at the company to a minimum of $70,000. Price himself is taking a pay cut from $1 million down to $70,000.

Price explained on "Varney & Co." today that he believes this will be a great move for the company and he expects a positive return on this investment.

"When you take care of people, they tend to take care of you," Price said, pointing out that when the company instituted unlimited vacation last year, productivity went up.

"What you see is inequality in this country is getting bigger and bigger and bigger," Price said.

He asserted that if people would step up and self-regulate, then it wouldn't be necessary for the government to set the minimum wage and intervene with companies.

"I do think there is also a moral imperative of us as leaders to try to do the best we can for everybody. And I think if we step up and take these problems seriously, there will be less need for politics to be involved," Price said.

Watch more from "Varney & Co." above.

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