Mark Cuban, a self-made billionaire widely known for his role on ABC’s “Shark Tank,” is no stranger to selling his companies or shares when it’s time to move on. But he also makes it a point to give out heavy bonuses to the employees of these companies.
Cuban recently posted on X, “In every business I’ve sold I’ve paid out bonuses to every employee that was there more than a year.” From these sales, many of his employees made millions.
Don’t Miss:
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 divvied that out among his 80 employees, equating to about $15,000 per person if it was split equally.
After that, he kept up with giving 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.
Upon selling his HDNet shares, while Cuban says the sale wasn’t as big, he still paid 20% of his profits to employees. Most recently, he paid out more than $35 million in bonuses to employees of the Dallas Mavericks after selling the majority of his shares.
“As a thank you for all your hard work making the Mavs an amazing organization, each of you will be receiving a bonus from myself, and the Adelson and Dumont families,” an email from Cuban to Mavs employees, obtained by ESPN.com, read. “In total, we will be paying out approximately $35 plus million dollars in bonuses to you all.”
Trending: Many are surprised by Mark Cuban’s advice for lotto winners: Cash or annuity?
“To calculate your bonus, we used a framework that took into consideration how long you have worked for the Mavs. You will receive your bonus in the very near future. I’m excited to continue our work making the Mavs the best franchise in all of 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 the proceeds of his company sales has consistently transformed many of his employees into millionaires. This strategy not only rewards hard work but also cultivates loyalty and dedication among his team members.
While most individuals might not have the opportunity to work for a billionaire entrepreneur like Mark Cuban, principles of financial planning and wealth management are universally important. Whether you’re planning for retirement, investing, or considering the sale of a business, having a financial advisor can make a significant difference. Just as Mark Cuban ensures his employees benefit from his business successes, a financial advisor can help ensure you are making the most of your financial opportunities.
Read Next:
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article From Business Sale To Retirement Wealth: How Mark Cuban Turned 91% Of His Employees Into Millionaires originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.