"Responding to a recent Oxfam report about billionaire wealth increasing by $33 trillion since 2015, Cuban posted on X that the reason behind the surge is that "the stock market has gone straight up." "You know who is funding the increase, particularly lately? Retail investors. 401ks," Cuban wrote. "The better question is, why are we not giving incentives to companies to require them to give shares in their companies to all employees, at the same percentage of cash earnings as the CEO?""
"While many companies already offer stock ownership or profit-sharing, many cap what employees can get. For example, the tech company Intel has an enrollment period twice a year, where employees buy stock up to 15% of their salary at a 15% discount-or a maximum of $21,250 a year. Meanwhile, tech giant Adobe offers employees to contribute up to 25% of their salaries (with a maximum of $21,250 per year) at a 15% discount."
"With an estimated net worth of $6 billion, Shark Tank star Mark Cuban has built his fortune by betting on ownership. He began his career founding broadcast.com before selling it to Yahoo in a $5.7 billion deal in 1999. Nowadays, he owns a minority stake in the NBA's Dallas Mavericks and is co-founder of his 2022 venture Cost Plus Drugs."
Founders and C-suite executives have grown wealthier from soaring stock gains funded largely by retail investors and 401(k) contributions. The proposal calls for incentives or requirements for companies to grant shares to all employees at the same percentage of cash earnings as the CEO. Many companies offer stock ownership or profit-sharing but often cap participation through enrollment limits or annual maximums. Intel allows employees to buy up to 15% of salary at a 15% discount with a $21,250 annual cap; Adobe allows up to 25% with the same cap. The emphasis shifts from criticizing wealth itself to advocating that corporate wealth and executives’ liquid net worth be used to benefit employees and communities.
Read at Fortune
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