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How Mark Cuban Turned 91% of His Employees Into Millionaires
From Selling Businesses to Retirement Riches: How Mark Cuban Turned 91% of His Employees Into Millionaires
Marcos Cubano, a billionaire who became 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 handing out hefty bonuses to employees at these companies.
Cuban recently posted on X: “In every business I sold, I paid bonuses to every employee who was there more than a year.” From these sales, many of his employees made millions.
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In 1990, Cuban sold his first company, a software company called MicroSolutions, for $6 million to CompuServe. He took 20% of the sales price and divided it among his 80 employees, which equates to about $15,000 per person if divided equally.
After that, he continued 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.
When selling his HDNet shares, although Cuban says the sale wasn’t that big, he still paid 20% of his profits to employees. Most recently, he paid more than $35 million in bonuses to employees at Dallas Mavericks after selling the majority of its shares.
“As a thank you for all your hard work in making the Mavs an incredible organization, each of you will receive a bonus from me and the Adelson and Dumont families,” an email from Cuban to Mavs employees, obtained by ESPN.com, said. to read. “In total, we will pay approximately $35 million or more in bonuses to all of you.”
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“To calculate your bonus, we used a framework that took into account how long you 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 handing out bonuses based on his company’s sales has consistently turned many of his employees into millionaires. This strategy not only rewards hard work but also cultivates loyalty and dedication from your team members.
While most people may not have the opportunity to work for a billionaire businessman like Mark Cuban, the principles of financial planning and wealth management are universally important. Whether you’re planning to retire, invest, or consider selling a business, having a financial advisor can make a significant difference. Just as Mark Cuban ensures his employees benefit from the success of his business, a financial advisor can help ensure you make the most of your financial opportunities.
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This article From Selling Businesses to Retirement Riches: How Mark Cuban Turned 91% of His Employees Into Millionaires originally appeared in Benzinga. with
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