Charles Schwab's $25,000 Payment to Ivy Lee

The Historic Consultation

In 1918, productivity consultant Ivy Lee met with industrialist Charles Schwab, president of Bethlehem Steel Corporation. Schwab challenged Lee to improve his executives' efficiency, agreeing to pay whatever the advice was worth after three months of implementation.

The Simple Method

Lee's recommendation was remarkably simple:

1. At the end of each workday, write down the six most important tasks for tomorrow
2. Prioritize those six items in order of importance
3. The next day, concentrate only on the first task until it's complete
4. Move to the second task only after completing the first
5. Continue this process through the list
6. At day's end, move any uncompleted items to tomorrow's list of six

The Payment

After implementing the method for three months, Schwab was so impressed with the results that he sent Lee a check for $25,000—equivalent to approximately $400,000 in today's dollars. This remains one of the most expensive pieces of productivity advice ever given.

Why It Worked

The method's effectiveness came from:

• Forced Prioritization: Limiting to six tasks required identifying what truly mattered
• Sequential Focus: Single-tasking prevented context switching and distraction
• Simplicity: The system was easy to understand and implement
• Daily Reset: Each day started fresh with renewed prioritization
• Realistic Planning: Six tasks was achievable, reducing overwhelm

Historical Significance

This transaction demonstrates:

• The tangible business value of productivity systems
• That simple solutions can be more effective than complex ones
• The willingness of successful leaders to invest in time management
• How a basic prioritization framework can transform organizational effectiveness

Modern Relevance

Over 100 years later, the Ivy Lee Method remains popular because its core principles—prioritization, focus, and sequential execution—are timeless. The $25,000 payment serves as a powerful reminder that effective time management has always been worth significant investment.