Billionaire entrepreneur Mark Cuban is pushing for companies to share financial rewards with employees, arguing that stock options should extend beyond CEOs to all workers who help drive a company's success.
Cuban Urges Companies To Give Stock Options To All Employees
On Sunday, Cuban made the comments on X, responding to discussions about the growing wealth gap between top executives and average employees.
"The better question is why are we not giving incentives to companies to require them to give shares in their companies to all employees, at the same percentage of cash earnings as the CEO?" he wrote.
Billionaire Highlights CEO Pay Gap And Stock Market Growth
He added that billionaire wealth is largely increasing because of stock market growth, funded in part by retail investors and 401(k) accounts.
"You know who is funding the increase, particularly lately? Retail investors. 401ks," Cuban said.
Cuban also emphasized that wealth alone is not the ultimate reward for entrepreneurs.
"The value of those dollars becomes much greater, to you, and so many others, when you use your business or other expertise to help others. That is the greater reward," he wrote.
Cuban And Nvidia Highlight Explosive Employee Wealth Growth
Cuban repeatedly shared company profits with employees, creating hundreds of millionaires.
In June 2024, he noted on X that every business he sold rewarded employees who had been with the company for over a year.
At Broadcast.com, 300 of 330 employees became millionaires; at MicroSolutions, 80 employees received 20% of the sale proceeds; and at HDNet, payouts were about 20%, though some layoffs occurred after the sale.
In August, Nvidia Corp. (NASDAQ:NVDA) demonstrated similar wealth creation for its employees.
A post on X by The Kobeissi Letter reported that roughly 50% of Nvidia employees were worth over $25 million, with about 80% being millionaires.
A June survey of over 3,000 employees found 76–78% were millionaires, nearly half with net worths above $25 million.
This surge reflected Nvidia's rapid market growth and the success of its employee stock purchase program, which allowed staff to buy shares at a 15% discount and benefit from the company's expansion.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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