Principles are ways of successfully dealing with reality to get what you want out of life.
Ray Dalio, one of the world’s most successful investors and entrepreneurs, cites principles as his key to success.
Pay people enough so that they're not under financial stress, but not so much that they become fat and happy. You want your people to be motivated to perform so they can realize their dreams. You don't want people to accept a job for the security of making a lot more money-- you want them to come for the opportunity to earn it through hard and creative work.