Employee stock ownership is one of the most effective ways to help workers build long-term wealth, according to entrepreneur and Shark Tank judge Mark Cuban. He believes companies should give every employee a stake in the business to ensure they receive fair rewards.
In Cuban’s view, everyone from the CEO to the janitor should own company stock. As the business grows in value, employees who own shares can benefit alongside the company.
Why Employee Stock Ownership Matters
Mark Cuban recently shared his views on the What It Takes podcast by Unmoderated News, arguing that companies should reward employees when their businesses thrive. He believes that stock ownership creates stronger alignment between employees and employers while allowing workers to build meaningful wealth over time.
As quoted by Fortune, Cuban said, “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.” His approach focuses on creating financial opportunities for everyone, not just those at the top.
How Employee Stock Ownership Helped SpaceX Workers Build Wealth
To support his argument, Cuban pointed to SpaceX’s soaring private valuation, which has reportedly turned thousands of current and former employees into millionaires through employee stock ownership and company share sales.
The wealth creation extended far beyond executives, benefiting welders, machinists, technicians, and many other employees who received equity while helping build the company.
One frequently cited example is Juan Hernandez, a welder who joined SpaceX in 2015. He reportedly saw his stock holdings grow to more than $1 million as the company’s valuation increased. For Cuban, these stories show how employee stock ownership can transform ordinary workers into long-term wealth creators.
A Strategy Cuban Has Practiced for Decades
Cuban says his belief in employee ownership is backed by his own business experience. When Yahoo acquired Broadcast.com for $5.7 billion in 1999, he said around 300 of the company’s 330 employees became millionaires because they owned company stock.
Similar employee payouts followed the sales of MicroSolutions and later the Dallas Mavericks.
Rather than treating equity as an executive-only benefit, Cuban has consistently argued that employees should share in the financial rewards when a business succeeds.
Cuban’s Formula for Fair Equity Distribution
According to Cuban, companies should adopt a simple and fair approach to stock compensation. If a CEO receives stock equal to a certain percentage of their salary, employees should receive equity worth the same percentage of their own pay.
This proportional model ensures employee stock ownership benefits every worker, allowing them to build wealth alongside company leaders regardless of their role.
Cuban thinks that when everyone has a part of the business, success is shared widely. This helps reduce income inequality while encouraging employees to contribute to the company’s long-term success.
