It seems pretty irresponsible not to mention that one of the primary reasons the business is facing issues is because Dan Price's brother/co-founder is sueing him for differences that, according to both of them, go back quite a while before this change. Specifically, the brother wants an immediate buyout, which is a problem due to this change sinking most of the past years profits into these raises.

Specifically, from the article posted yesterday:

Lucas, who lives in Seattle, declined to be interviewed but wrote in an email: “Dan has taken millions of dollars out of the company for himself while denying me the benefits of the ownership of my shares, and otherwise favoring his own interests as the majority shareholder over my interests.” He said his complaints predated the pay raises.

Even so, they clearly are critical to the outcome. With profits, at least in the short term, shifted to salaries, there is little left over to buy out his brother, let alone pay the legal bills or make longer-term capital improvements in the company, Dan said.