The founder and CEO of Gravity Payments, Dan Price, just gave up $900,000 a year in wages so that over the next three years all of his employees could make $70,000 a year as their minimum wage ...
To be sure, bonuses and dividends should keep Price comfortable. Still, the move is a marketing and labor motivating stroke of genius.
The genesis of the raise is tied to some solid research. Specifically, "happiness research" carried out by a Nobel Prize winning psychologist Daniel Kahneman and Angus Deaton found that the emotional quality of an individuals daily experience rises with income, but only to a point. That point is about $75,000.
They also found that while more money doesn't buy much more happiness after $75,000, earning less than $75,000 can deprive you of happiness and emotional well-being because of the stress associated with trying to make ends meet.
Whatever Price's motivation, or what the cynics might say about his bonuses and dividend payouts, it's clear that Price is embracing a salary model that both puts him ahead of the curve and makes many corporate CEOs uneasy
- Mark
The genesis of the raise is tied to some solid research. Specifically, "happiness research" carried out by a Nobel Prize winning psychologist Daniel Kahneman and Angus Deaton found that the emotional quality of an individuals daily experience rises with income, but only to a point. That point is about $75,000.
They also found that while more money doesn't buy much more happiness after $75,000, earning less than $75,000 can deprive you of happiness and emotional well-being because of the stress associated with trying to make ends meet.
Whatever Price's motivation, or what the cynics might say about his bonuses and dividend payouts, it's clear that Price is embracing a salary model that both puts him ahead of the curve and makes many corporate CEOs uneasy
- Mark
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