Key facts
- Mark Cuban believes giving all employees company stock is a key way to address income inequality.
- He proposed using tax incentives to encourage businesses to distribute equity broadly.
- Cuban suggested that if a CEO receives stock worth a certain percentage of their cash compensation, employees should receive the same proportional amount.
- He cited his own experience with Broadcast.com, where employees became millionaires after its sale to Yahoo.
- The proposal comes amid reports of widening pay gaps between CEOs and average workers.
Mark Cuban, the billionaire entrepreneur and founder of Cost Plus Drugs, has advocated for companies to grant stock to all employees as a means to combat income inequality. Speaking on the "What It Takes" podcast, Cuban proposed that every employee, regardless of their position, should receive equity, suggesting that tax codes could be used to incentivize such practices.
Cuban argued that sharing equity directly benefits employees when their companies succeed, thereby reducing wealth disparities. He suggested that companies could receive lower corporate tax rates, such as 21%, if they offer employees stock warrants or options proportional to their cash compensation, mirroring the percentage given to CEOs. Conversely, companies that do not adopt this approach could face higher taxes.
This proposal comes at a time when the gap between executive and worker pay continues to widen. Reports indicate that CEOs of major companies saw significant pay increases in 2025, while average worker pay saw a much smaller rise. Cuban has a history of advocating for employee profit-sharing, having paid bonuses after company sales that made many employees millionaires.
Similar sentiments have been expressed by other industry leaders, such as Elon Musk, who has stated his philosophy of ensuring all company employees participate in the company's upside. Blue Origin is also reportedly introducing a more generous equity scheme for its employees.