CEO takes 90% pay cut to make employees happy
Dan Price, CEO of Seattle-based payment processing company Gravity Payments, has taken the decision to introduce a new minimum wage of $70,000 (£47,000) for his employees, while reducing his own salary by 90 per cent.
Why? He read a study about happiness in the workplace.
The happiness research came from Angus Deaton and Daniel Kahneman, a Nobel Prize-winning psychologist. They found that what they called emotional well-being — defined as “the emotional quality of an individual’s everyday experience, the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one’s life pleasant or unpleasant” — rises with income, but only to a point, which is about $75,000 a year.
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