As founders and C-suite executives grow wealthier from soaring stock gains, billionaire Mark Cuban says employees deserve a piece of that pie too.
“You know who is funding the increase, particularly lately? Retail investors. 401ks,” Cuban wrote. “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?”
While many companies already offer stock ownership or profit-sharing, many cap what employees can get.
Given his success, the investor says wealth gains for leaders are okay, just as long as it’s benefiting everyone properly: “Compassion and capitalism—not greed—are what can make this country far greater.”
“Multiple studies show that when everyone owns stocks, the results are better. Which matches my experiences with multiple companies,” Cuban told Fortune.
The billionaire added that the more “liquid net worth” a CEO has, the more opportunity they have to benefit others and change their life for good.
“The value of those dollars become much greater, to you, and so many others, when you use your business, or other expertise to help others.”
Cuban has long argued that companies should give employees stock options and he’s backed up that philosophy in his own ventures. For example, he has often shared profits through cash bonuses rather than equity grants.
In the post, he wrote that while at Broadcast.com, 300 out of 330 employees became millionaires. Meanwhile, at MicroSolutions (the first company he founded) he paid out 20% to 80 employees. The Mavericks he said wasn’t a full exit, but he paid out more than $35 million to staff.
Are you changing stock options for your employees this year? Fortune wants to hear from you Contact jessica.coacci@fortune.com
