Mark Cuban argues that companies should reduce income inequality by providing equity to every employee to ensure workers share in a firm's success.
Mark Cuban, a billionaire entrepreneur with a net worth of $10.2 billion, says firms should address wealth inequality by awarding company stock to every employee. Speaking on the "What It Takes" podcast, Mark Cuban argued that everyone from the janitor to the CEO deserves a stake in the business. He believes that ownership, rather than just a salary, is the most effective way for workers to build lasting wealth as a company grows. To encourage this shift, Mark Cuban suggested that the government could use the tax code to provide incentives. He proposed that businesses could maintain a 21% corporate tax rate only if they provide employees with stock warrants or options at the same percentage of their cash compensation as the CEO receives. For example, if a CEO receives stock equal to 10% of their salary, employees should receive stock at that same proportional rate. Mark Cuban noted that this approach would ensure that when a company succeeds, every worker benefits immediately from the growth.