Mark Cuban Offers Advice On How To Reduce Wealth Inequality
Either we hate him or love him, but neither of those emotions can deny the fact that Mark Cuban knows a thing or two about money. With a net worth of 4.1 billion, when Cuban offers up some tips, you should take note of what he has to offer. Early in June, the Dallas Mavericks owner shared that workers paid hourly are "always going to fall behind." He also served up a fascinating idea on how to fix this issue.
It's not completely dismantling capitalism; it's merely giving the little guy a boost.
"We, as entrepreneurs, have got to make a point to give stock to everybody that works for us. Period. End of story," Cuban preached. "No exceptions, because that's the only way people are going to get any type of equity appreciation."
Slow your roll there billionaire, not all companies are on the verge of going public and making millions or even billions of dollars in revenue. That's logically the only argument you can make against Cuban's idea.
"300 out of 330 [Broadcast.com] employees became millionaires" at the time of its sale, Cuban tells CNBC Make It. Wow, if only every company could gain enough steam to become that prosperous. But with an incentive like stock, they could push employees to work harder which in turns raises the quality of work getting done.
On June 3, Cuban took to Twitter to say, "Small business are the ones best situated to offer equity. They are more like families. The owner can own 70, 80, even 90 percent, but if the owner pays out 10 percent to employees, it's a better company." Everyone might not agree with his way of thinking, especially the sheer capitalists, but this is an argument for reducing wealth inequality.