Marc Cuban, a self-made billionaire widely known for his role on ABC’s “Shark Tank,” is no stranger to selling his companies or stocks when it’s time to move on. But he also makes a point of granting heavy bonuses to the employees of these companies.
Cuban recently posted on Through these sales, many of his employees earned millions.
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In 1990, Cuban sold his first business, a software company called MicroSolutions, for $6 million to CompuServe. He took 20 percent of the sale price and divided it among his 80 employees, which works out to about $15,000 per person if the amount was split equally.
After that, he continued to give back to his employees. In 1999, 91 percent 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.
When selling his HDNet stock, even though Cuban says the sale wasn’t as big, he still returned 20% of his profits to employees. More recently, he paid more than $35 million in bonuses to employees of the Dallas Mavericks after selling the majority of its shares.
“As a thank you for all your hard work to make the Mavs an incredible organization, each of you will receive a bonus from me, as well as the Adelson and Dumont families,” an email from Cuban to Mavs employees, obtained by ESPN.com, read. “In total, we’ll pay you all about $35, plus millions of dollars in bonuses.”
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“To calculate your bonus, we used a framework that takes into account the length of time you have worked for the Mavs. You will receive your bonus in the very near future. I am excited to continue our work to make the Mavs the best franchise of all . sport! Here we go, Mavs!”
Mark Cuban’s approach to sharing his business success with his employees is unique and inspiring. His practice of handing out bonuses from his company’s sales proceeds consistently turned many of his employees into millionaires. This strategy not only rewards hard work but also cultivates loyalty and dedication among its team members.
Although 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 are planning your 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 you make the most of your financial opportunities.
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This item From Business Sale to Retirement Wealth: How Mark Cuban Turned 91% of His Employees into Millionaires originally appeared on Benzinga.com
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