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A CEO raised everyone's salary to $70,000/year. The backlash against him doesn't make sense.

Back in April, Dan Price, CEO of Gravity Payments, announced a plan to cut his own salary in order to raise minimum pay at the company to $70,000/year.

Photo by Jimmyjay525/Wikimedia Commons.


And there was much rejoicing. At last, a CEO gets it! Finally, someone at the top is putting their money where their mouth is and striking against inequality!

And the best part: Everyone wins and no one loses!

But apparently, Price's announcement actually made some people feel like they had lost...

...including two higher-ranking employees at Gravity Payments, who said the blanket raise minimized their contributions to the organization, according to a July 31, 2015, report in the New York Times.

"Two of Mr. Price's most valued employees quit, spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises."

Predictably, the story of the employee backlash began trending on social media almost immediately...

...fueled largely by the gloating of America's uncles.

"I told you so. Economics. Natural selection. The Fountainhead." — Your uncle. Photo by Matthew G/Flickr.

"This is why you can't reward laziness," your uncle probably posted on Facebook. "It's bad for business, and it disrespects the hard work of hard-working people."

According to some economic theories, it's human nature to think like this.

Equity theory, which was developed by psychologist J. Stacy Adams in 1963, claims that if one group of people within an organization discover that a second group of people within the same organization are being compensated similarly for work they perceive to be less valuable, the first group of people get — to use a bit of social science terminology — "pretty pissed."

And look, if I were a disgruntled employee and a bunch of my colleagues who I didn't think deserved it got raises and I didn't, I might feel like quitting too.

But here's the thing: We're not economic theory. We are human beings. With free will! We don't have to act the way obscure social science texts predict we will.

In fact, in many cases, it actually makes more logical sense not to. Even though it feels unfair.

If you think about it that way, the backlash against Price really doesn't add up.

Let's break it down, point by point.

"It's unfair that people who aren't doing as hard of a job as me are getting a lot more money, and I'm not."

B-b-b-b-b-b-b-b-b-but. But. But ... ... But. ......... But. Image via Thinkstock.

You're a software engineer at a credit card processing company. You're making $150K/year. The guy in the boiler room makes $35K/year.

Then, boom. Your CEO makes a random announcement on a Monday morning, and suddenly the guy in the (figurative) boiler room is making $70K/year. And you're pissed! "What did he do to deserve that?" you wonder. "Why does he get so lucky and I don't?"

Here's the catch: Nothing bad has happened to you. You're still doing great! It's just ... some other people are making less-not-as-much-money-as-you than before.

Yeah, the other guy just ran into a boatload of cash, and that feels unfair. But the important thing to remember is that you are still making the same amount of money as before.

Is the guy in the boiler room only worth 20% what you're worth — or half as much? Not so long ago, the latter seemed fair. Now, no one blinks an eye when CEOs make 373 times more than the average U.S. worker. But when it comes down to it, it's ... kind of arbitrary.

Either way, economic theory states you're only mad because someone else is doing better than they were last week relative to you.

That seems a little ... I don't know. Just ... I don't know. Just think about it.

"But my salary isn't just how much I get paid. It's a measure of how important I am relative to other people."

I'll give you 50,000 reasons why I'm better than you! Image via Thinkstock.

Look, I totally get it. Many people, myself included, derive tons of satisfaction from earning a lot of money and knowing that other people don't earn as much. Not only does it feel completely amazing, it's only natural to tie the number on your paycheck to how valuable you are as a human being.

But what if ... I don't know — we didn't.

Like, what if we didn't measure our self-worth against how much money we made?

Just ... as something to try.

It's not that hard, actually! Here, for example, are some other ways you can measure your self-worth:

1. How good you are at basketball.

2. Whether you can build a boat.

3. Whether you're kind.

4. Whether you've eaten at all the restaurants featured on "Diners, Drive-ins, and Dives."

5. How many celebrities you know.

6. Whether you are a reliable, dependable friend, and/or you call your mother at least once a week.

These scales may not be as obvious. But they're really useful! Because there may come a time when you stop making a lot of money. For most people, it happens eventually.

And when that day comes, we'll be glad we had one of these bad boys in our back pocket. And that we called our mother all those times.

"But the work they do is not as hard as the work I do."

Not-hard work, apparently. Photo by Alfred T. Palmer/Library of Congress.

True, many of the people who received the largest raises at Gravity Payments fill traditionally "blue collar" roles in the company. People who, as one of the departing Gravity Payments employees artfully euphemism'd to the Times, clock in and clock out:

"The new pay scale also helped push Grant Moran, 29, Gravity's web developer, to leave. "I had a lot of mixed emotions," he said. His own salary was bumped up to $50,000 from $41,000 (the first stage of the raise), but the policy was nevertheless disconcerting. “Now the people who were just clocking in and out were making the same as me," he complained. “It shackles high performers to less motivated team members."

And, sure! For someone who spends their days doing the essential work of sitting in front of a computer screen debugging Java C++ or whatever, it must be really upsetting when your boss signals that your coworkers who spend their days lifting really heavy boxes are also important members of the team whose jobs contribute real value.

It must also be hard to see them get raises that make a real, material difference in their lives. Here's the Times, again (emphasis mine):

"Mr. Price has undoubtedly made an immediate difference in the lives of many of his employees. José Garcia, 30, who supervises an equipment team, was able to afford to move into the city and replace the worn tires on his car. Ms. Ortiz, who was briefly homeless as a child, can now visit her family in Burlington, Vt. Cody Boorman, 22, who handles operations out of his eastern Washington home, said he and his wife finally felt financially secure enough to start a family."

There are a few ways to react to this.

One way is to resent your coworkers and feel superior.

Another possible way is to be happy for them, instead of resenting them.

You could also try being more stoked that you are getting a raise than upset that someone else also is.

You could understand that, while your job is hard and one they probably wouldn't be able to do, their jobs are also hard, also important, and ones you probably wouldn't want, or even be able, to do.

You could consider that maybe the kind of work our society values and doesn't value is kind of arbitrary, and why shouldn't an equipment manager make the same salary as a web developer?

And you could realize that the financial security of your newly well-compensated colleagues will ultimately allow them to spend more of their brain space on improving the company and less on how they're going to feed their family night to night, thus benefitting the whole team.

It's asking a lot. But you could view it that way if you wanted to.

Here's the good news.

What, this isn't how you react to good news? Image via Thinkstock.

For all the commotion, all the articles, theories, and social media blowback, only two employees quit Gravity Payments as a result of the mass raise.

Two.

In a company of roughly 120.

That means 118 people stayed.

Gravity has its share of troubles. They're facing a major lawsuit (unrelated to the pay bump), which, combined with the pay increase, has created cash flow problems for the company.

Change is hard. And feelings can get complicated. It's human nature to compare yourself to others, and that gets even more fraught when money is involved. That seems to be what's playing out post-announcement. It doesn't mean anyone is a bad person — even the two people who quit.

But at the end of the day, 118 employees either benefited from the salary increase or felt that their own happiness wasn't dependent on the continuing relative misfortune of their coworkers.

It may not seem like much, but it's a decent start, at the very least.

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Three women, three MS journeys: How multiple sclerosis looks different for everyone

Gina, Nathalie and Helga share their reactions to being diagnosed with MS and how they stay informed and positive in the face of ever-changing symptoms.

Courtesy of Sanofi

Helga, Nathalie and Gina all have MS, and their experiences show how differently the disease can manifest.

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It’s been 155 years since neurologist Jean-Martin Charcot gave the first lecture on a mysterious progressive illness he called “multiple sclerosis.” Since then, we’ve learned a lot. We know MS causes the immune system to attack healthy tissue, including damaging the brain and spinal cord. Resulting symptoms can be debilitating and include fatigue, blurred vision, memory problems and weakness. Huge advancements in our understanding of MS and its underlying causes, as well as treatment advances, have been made in the past few decades, but MS remains a complex and unpredictable reality for the 2.8 million+ people diagnosed around the world.

Ironically, the only real constant for people living with MS is change. There’s no set pattern or standard progression of the disease, so each person’s experience is unique. Some people with MS have mild symptoms that worsen slowly but sometimes improve, while others can have severe symptoms that drastically alter their daily lives.

All people with MS share some things in common, however, such as the need to stay informed on the ever-evolving research, find various lines of support and try to remain hopeful as they continue living with the disease.

To better understand what navigating life with MS really looks like, three women shared their MS stories with us. Their journeys demonstrate how MS can look different for different people and interestingly, how the language used to talk about the disease can greatly impact how people understand their realities.

woman with horse, woman riding horseGina loves riding her horse, Benita.Courtesy of Sanofi

Gina—Hamburg, Germany (diagnosed with relapsing multiple sclerosis in 2017)

When her youngest son was 4 months old, Gina started having problems with her eye. She’d soon learn she was experiencing optic neuritis—her first symptom of MS.

“Immediately after the diagnosis, I looked up facts on MS because I didn’t know anything about it,” Gina says. “And as soon as I knew what could really happen with this disease, I actually got scared.”

As her family’s primary income provider, she worried about how MS would impact her ability to work as a writer and editor. Her family was afraid she was going to end up in a wheelchair. However, for now, Gina’s MS is managed well enough that she still works full-time and is able to be active.

“When I tell somebody that I have MS, they often don't believe me the first time because I don't fulfill any stereotypes,” she says.

Overwhelmed by negative perspectives on living with MS, Gina sought support in the online MS community, which she found to be much more positive.

“I think it’s important to use as many positive words as you can when talking about MS.” It’s important to be realistic while also conveying hope, she says. “MS is an insidious disease that can cause many bad symptoms…that can be frightening, and you can't gloss over it, either.”

To give back to the online community that helped her so much, Gina started a blog to share her story and help others trying to learn about their diagnosis.

Though she deals with fatigue and cognitive dysfunction sometimes, Gina stays active swimming, biking, riding horses and playing with her sons, who are now 11 and 6.

Cognitive dysfunction is common in MS, with over half of people affected. It can impact memory, attention, planning, and word-finding. As with many aspects of MS, some people experience mild changes, while others face more challenges.

Gina says that while there’s still a lot of education about MS needed, she feels positive about the future of MS because there’s so much research being done.

woman in wheelchair holding medal, woman rowingNathalie is an award-winning rower with multiple international titles.Courtesy of Sanofi

Nathalie — Pennes Mirabeau, France (diagnosed with relapsing-remitting multiple sclerosis in 2002)

Nathalie was a teenager and a competitive athlete when she noticed her first symptoms of MS, but it would take four years of “limbo” before she was diagnosed.

“Ultimately, the diagnosis was more of a relief, than a shock,” she says. “Because when you have signs and you don’t know why, it’s worse than knowing, in the end, what you have.”

However, learning more about the disease—and the realities of disease progression—scared her.

“That glimpse of the future was direct and traumatic,” she says. Her neurologist explained that the disease evolves differently for everyone, and her situation might end up being serious or very mild. So, she decided to stop comparing herself to others with MS.

She said to herself, “We’ll see what happens, and you’ll manage it bit by bit.”

By 2005, Nathalie’s MS had progressed to the point of needing a wheelchair. However, that has not dampened her competitive spirit.

Nathalie began her international rowing career in 2009 and has won multiple world titles, including two Paralympic medals—silver in London and bronze in Tokyo. Now, at 42, she still trains 11 times a week. Fatigue can be a problem, and sometimes hard workouts leave her with muscle stiffness and shaking, but she credits her ongoing sports career for helping her feel in tune with her body’s signals.

“Over the years, I’ve learned to listen to my body, letting my body guide when I need to stop and take breaks,” she says.

Nathalie explains that she used to only look backwards because of the initial shock of her diagnosis. In time, she stopped thinking about what she couldn’t do anymore and focused on her future. She now lives in the following mindset: “Even when doors close, don’t miss out on those that open.” Instead of focusing on what she can’t do, she focuses on the opportunities she still has. Right now, this includes her training for the 2024 Paralympic Games in Paris, where she will compete for another rowing medal.

“I only go forward,” she says. “Well, I try, anyway…It’s easy to say, it’s not always easy to do. But that’s what I try to do.”

woman exiting water after swimming, woman with great daneHelga's Great Dane has become a helpful and beloved companion.Courtesy of Sanofi

Helga—Johannesburg, South Africa (diagnosed with relapsing multiple sclerosis in 2010)

When Helga first started having balance issues and numbness in her feet, she chalked it up to her training as a runner. But when the numbness moved to her face, she knew something was wrong. She never guessed it was MS.

“When I was diagnosed, I felt completely overwhelmed and clueless,” Helga says. “I felt that I had nowhere near enough information. I did not know anything about the disease…I had no idea that it was going to be a process of continually monitoring and adjusting your lifestyle.”

In the beginning, Helga’s symptoms developed slowly, and she didn’t appear ill to others. She was even able to run for a few years after her diagnosis, but she couldn’t do marathons anymore, and she began to fall frequently due to balance issues and right-foot dragging. Then her cognition issues became more problematic, especially in her job as a trainer in a printing company.

“My executive function, decision-making and short-term memory were affected to the point that I was eventually medically unfit for work,” she says. She stopped working in 2017.

However, she didn’t stop living life. Even though she could no longer run, she continued to swim competitively. She got a Great Dane puppy and trained him as a service dog to help her walk. She also serves as vice chair of the patient support organization Multiple Sclerosis South Africa, and she advises others who have been diagnosed to join a patient advocacy group as soon as possible to get reliable information and meet others with MS.

Helga says she is “hopeful” about the future of MS. “I must say that I am so grateful that we have all the new medications available, because my life would not be the same if it wasn't for that,” she adds.

Part of how she manages her MS is by looking at the positives.

“If I could tell the world one thing about MS, it would be that MS is an incurable disease of the nervous system, but it's also the greatest teacher of valuing your health, family, friends, and managing change in your life,” she says. “My life is diversified in a way that I never, ever thought it would, and MS has been honestly the greatest teacher.”

Each MS journey is unique – with each person impacted experiencing different struggles, successes, and feelings as they manage this unpredictable disease. But the common thread is clear – there is a critical need for information, support, and hope. We are proud to participate in World MS Day and share these incredible stories of living life while living with MS. To learn more about MS, go to https://www.sanofi.com/why-words-really-matter-when-it-comes-to-multiple-sclerosis.

MAT-GLB-2301642-v1.0-05/2023

This article was sponsored by Sanofi. Participants were compensated when applicable.

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