IN THE KNOW – The Salary Experiment – Dan Price

Dan Price

A recent Princeton University study found that a person’s emotional well-being rises with their income—but only to a certain amount. That ideal number, the study found, is $75,000. CEOs who read this study took the information into account, but didn’t make any sweeping salary changes for employees. Dan Price, on the other hand, was so moved by the study that he decided to take a $930,000 pay cut in order to give his employees more. The CEO of Seattle-based Gravity Payments, Price has raised his 120 employees’ salaries to $70,000 by decreasing his own from $1 million to $70,000. “The dollars that you’re making underneath that amount are causing harm to your well-being. And that, to me, is powerful stuff,” Price said in an interview with Time. Price says he’s using this new strategy as an experiment. The success of the salary hike will be measured primarily through client satisfaction.

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