Mark Cuban, the self-made billionaire best known for his appearance on ABC's “Shark Tank,” is no stranger to selling his companies and stocks when it's time to move on, but he also insists on giving big bonuses to the employees of those companies.
Cuban recently posted on X that he paid a bonus to every employee who stayed with the company for more than a year in every business he sold. Many of his employees made millions of dollars from these sales.
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In 1990, Mr. Cuban sold his first company, software company MicroSolutions, to CompuServe for $6 million. He gave 20 percent of the proceeds to his 80 employees, which amounts to about $15,000 each if divided evenly.
He continued to give back to his employees: When Cuban sold his audio streaming service Broadcast.com to Yahoo for $5.7 billion in stock in 1999, 91% of the employees (300 out of 330) became millionaires.
Cuban said that when he sold his HDNet shares, the proceeds weren't huge, but he paid 20% of the profits to employees. Most recently, he paid out more than $35 million in bonuses to Dallas Mavericks employees after selling most of his stock.
“I, the Adelson and Dumont families will be issuing bonuses to each of you as a thank you for all your efforts in making the Mavs a great team,” Cuban wrote in an email to Mavs employees obtained by ESPN.com. “In total, each of you will receive a bonus of approximately $35 million or more.”
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“A framework was used to calculate my bonus that took into account my time with the Mavs. I will receive my bonus in the near future. I am excited to continue my work to make the Mavs the greatest franchise in sports. Go Mavs!”
Mark Cuban's approach to sharing the success of his business with his employees is unique and inspiring. His method of splitting bonuses from the company's sales has consistently made many of his employees millionaires. This strategy not only rewards hard work, but also fosters loyalty and dedication among his team members.
While most people 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 selling your business, having a financial advisor can make a big difference. Just as Mark Cuban ensures his employees benefit from the success of his business, a financial advisor can help you make the most of your financial opportunities.
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This article, “From Selling a Business to Building Retirement Wealth: How Mark Cuban Turned 91% of His Employees into Millionaires,” originally appeared on Benzinga.com.
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