Mark Cuban, a billionaire investor, is known for his generous business practices. He pays out bonuses to his employees every time he sells a company, a practice he believes has helped hundreds of people become millionaires. Cuban feels strongly that it is the right thing to do to share the wealth with those who contributed to the success of his businesses.
This approach dates back to 1990 when Cuban sold his first company, MicroSolutions, and paid out bonuses to all of his employees who had been with the company for more than a year. Since then, he has continued to set aside profits for loyal employees after selling other companies he has been involved with.
One notable example of this was when Cuban sold Broadcast.com to Yahoo for $5.7 billion in stock in 1999, and 300 of the company’s 330 employees became millionaires thanks to his employee payout practice. Even after becoming a billionaire, Cuban has maintained this practice, most recently paying out over $35 million to employees after selling his majority stake in the Dallas Mavericks NBA team last year.
Cuban’s philosophy is that everyone who contributes to the success of a company should benefit from that success. Despite his estimated net worth of $5.4 billion, he remains committed to sharing his wealth with the employees who have played a role in his business ventures.