Benzinga – by Bibhu Pattnaik, Benzinga Staff Writer.
Mark Cuban, the billionaire entrepreneur and minority owner of the NBA’s Dallas Mavericks, has consistently rewarded his employees with substantial bonuses upon selling his businesses.
What Happened: In a social media post on X last week, Cuban revealed that he has always allocated a portion of the sale proceeds to his employees.
“In every business I’ve sold I’ve paid out bonuses to every employee that was there more than a year,” Cuban said.
The practice began after Cuban sold his first company, MicroSolutions, for $6 million to CompuServe in 1990. He distributed 20% of the sale price among 80 employees, equating to $15,000 per staffer if divided equally, reported CNBC.
When Cuban sold Broadcast.com to Yahoo for $5.7 billion in 1999, 300 of the company’s 330 employees became millionaires. He continued this tradition with the sales of HDNet in 2019 and the Dallas Mavericks last year.
Also Read: Mark Cuban Reveals The One Reason He Won’t Vote For Donald Trump And Why Joe Biden Is The Better Leader: ‘To Me, That Says Everything’
Cuban’s first major entrepreneurial success came with the co-founding and sale of MicroSolutions, despite nearly going bankrupt due to a theft by his secretary.
“It made us get our s— together,” Cuban told Barstool Sports in 2020.
In 1995, Cuban took control of AudioNet, which later became Broadcast.com. Despite skepticism, the company thrived, and Cuban sold it for a significant profit, quickly cashing out his Yahoo stock before the dot-com bubble burst.
Last year, Cuban transferred a majority ownership of the Mavericks to the Adelson and Dumont families, putting the franchise’s value at roughly $3.5 billion. Despite the sale, he kept a 27% share and continued to oversee basketball operations.
According to Forbes, Cuban’s current net worth is $5.4 billion.
Why It Matters: Cuban’s approach to rewarding employees is a testament to his unique entrepreneurial journey. Cuban’s early realization that traditional employment was not his calling, as he shared in a candid interview, fueled his success.
He engaged in various entrepreneurial activities from a young age, ranging from door-to-door sales to offering dance lessons.
His resilience and self-discovery played a crucial role in his business ventures. Cuban’s decision to reward employees reflects his understanding of the value of a dedicated workforce.
This practice not only boosts employee morale but also ensures loyalty and hard work, contributing to the overall success of his businesses.
Now Read: Mark Cuban Reveals What People Don’t Understand About Becoming Super Wealthy
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
