What if the biggest raise an employee ever received didn't show up in a paycheck?
That's the question billionaire entrepreneur Mark Cuban wants corporate America to consider. Instead of focusing solely on higher wages, Cuban argues the real path to narrowing the wealth gap is giving employees a stake in the companies they help build.
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Speaking on the "What It Takes" podcast hosted by Sarah McCammon and released last week, Cuban said ownership—not salary—is the key to helping workers build lasting wealth.
"The way you're going to reduce income inequality for anybody who works with somebody is making sure they get shares of stock and then they benefit," Cuban said.
It's not a new philosophy for the former "Shark Tank" investor. Cuban said he's followed that playbook throughout his career.
"I would like to see it so that every single CEO/founder/entrepreneur does what I did, which was to give equity to every single employee," he said.
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Cuban isn't calling for mandatory wealth redistribution. Instead, he wants companies to have a financial incentive to share ownership more broadly.
When McCammon pointed out that Cuban's own equity-sharing was voluntary, he suggested using the tax code to encourage more businesses to follow suit.
"You can give them incentives to say, 'Look, if you want that 21% tax rate, then you need to give every single employee the same percentage in stock warrants, options, whatever it may be, of their cash compensation that you give to the CEO,'" Cuban said.
In other words, companies could keep today's lower corporate tax rate only if executives and rank-and-file employees received equity on the same proportional basis.
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Cuban illustrated the idea with a simple example.
"So if the CEO gets $100,000 worth of stock because they make $1 million in cash, and the janitor makes $50,000, then they deserve, you know, the same percentage in stock, and that will change the game," he said.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
