In a recent post on X, the investor shared his longstanding business practice that has helped hundreds of individuals achieve millionaire status throughout his successful career. When Cuban sells a company, he always allocates a portion of the profits to reward his employees. “In every business I’ve sold, I’ve paid out bonuses to every employee who has been with the company for more than a year,” Cuban wrote.
This practice dates back to 1990 when Cuban sold his first company, MicroSolutions, a software firm that earned $6 million at the time. He distributed 20% of the profit to the 80 employees, which amounted to $15,000 per employee if divided equally. When he sold Broadcast.com to Yahoo for $5.7 billion in stock in 1999, 300 out of 330 employees became millionaires due to this payout practice.
Since becoming a billionaire in 1999, Cuban has continued setting aside profits for loyal employees. Even after selling his majority stake in HDNet, now AXS TV, in 2019, he paid out 20% to his employees. Although HDNet was the only company where layoffs occurred right after the sale, Cuban has consistently prioritized rewarding his hardworking staff members.
Despite his immense success and estimated net worth of $5.4 billion, Cuban strongly believes that rewarding employees who contribute to the success of a company is the right thing to do. He has paid out over $35 million to employees after selling his majority stake in the Dallas Mavericks NBA team, which he purchased in 2000.
Cuban’s commitment to redistributing profits to employees is a testament to his values and ethos as a businessman. By prioritizing the financial well-being of his employees, Cuban has established a reputation as an investor who cares about the people who help make his ventures successful.