Mark Cuban Thinks Your Boss Should Make You Rich — 5 Legit Ways It Can Happen

Mark Cuban believes workers merit to get affluent alongside their CEOs. The billionaire capitalist and “Shark Tank” prima responded to information showing billionaire wealthiness accrued by $33 trillion since 2015 with a pointed question: wherefore aren’t companies required to springiness employees the aforesaid percent of institution banal that CEOs receive?

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“You cognize who is backing the increase, peculiarly lately? Retail investors. 401ks [sic],” Cuban wrote connected X (formerly Twitter). “The amended question is, wherefore are we not giving incentives to companies to necessitate them to springiness shares successful their companies to each employees, astatine the aforesaid percent of currency net arsenic the CEO?”

Cuban is worthy $6 cardinal himself aft selling Broadcast.com to Yahoo for $5.7 cardinal successful 1999. He knows however wealthiness instauration works, and helium thinks employees should payment from it too.

Here are 5 morganatic ways companies tin marque workers affluent alongside executives close present with existing tools.

Many companies already connection ESPPs, though Cuban argues the caps are excessively restrictive. These programs work, but the publication limits forestall employees from gathering important wealthiness adjacent erstwhile institution banal soars. A $21,250 yearly headdress means adjacent if banal doubles, you’ve lone made $21,250 successful gains that year. Nice, but not life-changing.

Cuban’s connection would region these caps and necktie worker banal grants to the aforesaid percent CEOs receive, making wealthiness accumulation proportional crossed the company.

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Companies tin assistance banal straight to employees without requiring purchase. This differs from ESPPs due to the fact that workers person equity arsenic compensation alternatively than buying it astatine discount.

Tech companies pioneered this attack with restricted banal units (RSUs) that vest implicit time, keeping employees invested successful institution occurrence long-term. When Facebook went public, thousands of employees became millionaires done banal grants awarded years earlier.

Cuban practiced this astatine Broadcast.com. He said 300 retired of 330 employees became millionaires erstwhile helium sold the company. That’s not from salary, it’s from equity ownership distributed broadly crossed the workforce.

According to Cuban, helium has “paid retired bonuses to each worker who’d been determination for much than a year” successful each concern he’s sold. At his archetypal company, MicroSolutions, helium paid retired 20% to 80 employees. At the Dallas Mavericks, CNBC reported, helium distributed much than $35 cardinal to staff.