Mark Cuban, a self-made billionaire best known for his role on ABC’s “Shark Tank,” is no stranger to selling his companies or stock when it’s time to move on. But he also makes it a point to give heavy bonuses to the employees of these companies.
Cuban recently posted on X, “In every business I’ve sold, I’ve paid bonuses to every employee who was there more than a year.” From these sales, many of his employees earned millions.
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In 1990, Cuban sold his first company, a software firm called MicroSolutions, for $6 million to CompuServe. He took 20% of the sale price and split it among his 80 employees, equaling about $15,000 per person if split equally.
After that, he continued to give back to his employees. In 1999, 91% of his employees (300 out of 330) became millionaires when Cuban sold his audio streaming service Broadcast.com to Yahoo for $5.7 billion in stock.
With the sale of his shares in HDNet, while Cuban says the sale wasn’t that big, he still paid 20% of his profits to employees. Most recently, he paid more than $35 million in bonuses to Dallas Mavericks employees after selling most of his stock.
“As a thank you for all your hard work to make the Mavs an amazing organization, each of you will receive a bonus from me and the Adelson and Dumont families,” an email from Cuban to Mavs employees, obtained by ESPN.com. read. “In total, we will pay approximately $35 million plus in bonuses to all of you.”
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“To calculate your bonus, we used a framework that took into account how long you have worked for the Mavs. You will receive your bonus in the very near future. I am excited to continue our work making the Mavs the best franchise in all sports Let’s go Mavs!
Mark Cuban’s approach to sharing his business success with his employees is unique and inspiring. His practice of distributing bonuses from his company’s sales revenue has consistently transformed many of his employees into millionaires. This strategy not only rewards hard work but also cultivates loyalty and commitment among his team members.
While most individuals may not have the opportunity to work for a billionaire entrepreneur like Mark Cuban, the principles of financial planning and wealth management are universally important. Whether you’re planning for retirement, investing or considering selling a business, having a financial advisor can make a significant difference. Just as Mark Cuban ensures that his employees benefit from his business successes, a financial advisor can help ensure that you are making the most of your financial opportunities.
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