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Mark Cuban says employee stock can help narrow income inequality
Cuban argues that when employees receive equity, stock gains can raise net worth across income levels, citing examples from his past company sales.
Billionaire entrepreneur Mark Cuban said in an interview that distributing company stock to employees is one of the fastest ways to spread wealth and address income inequality, drawing on his experience selling businesses and rewarding workers with equity, according to Yahoo Finance.
Cuban said he would like CEOs and founders to follow a model he used, giving equity to every employee after company sales, and he described how he paid out bonuses to employees tied to those exits. He also pointed to the Broadcast.com sale, saying it turned 300 of his employees into millionaires.
He added that employees should receive the same percentage ownership rather than different dollar amounts, arguing that a janitor and a CEO can benefit proportionally from stock appreciation when equity is broadly shared. Cuban also referenced Elon Musk and examples from companies associated with Musk, saying the public listings created thousands of millionaires for employees when share values rose.
Cuban discussed related themes including AI, healthcare, and workplace financial benefits. Yahoo Finance also cited Morgan Stanley research, which found that just 37.0% of employees participate in workplace financial benefits, though the excerpt provided cuts off before detailing the rest of the figure.