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CEO Behind 5,300% Stock Gain Says Secret Is Raising Salaries

  • Tange buys small software-testing firms, boosts staff pay
  • By cutting out middle men, he can still charge less to clients
Masaru Tange
Masaru TangePhotographer: Shoko Takayasu/Bloomberg
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Masaru Tange says the strategy that turned his company into one of Japan’s best-performing stocks may be surprising: He buys smaller firms and boosts their workers’ pay.

Tange’s Shift Inc., a software tester, acquires other businesses near the bottom of the industry supply chain and raises their engineers’ salaries. He says he’s able to do this and still charge competitive prices by cutting out layers of companies that serve as middlemen in the outsourcing process. And having more workers leads to higher sales.