Mark Cuban Calls For Mandatory Stock Awards For All Employees

@mcuban Disagree here. CEO creates the ultimate value of the company.

@mcuban stock isnt the problem, the ability to defer paying taxes (while still using it as collateral for purchases, margin withdrawals, etc) is why stock is so unequal in its utility. You can pay someone 50% stock but if they have to sell it for regular expenses, the results is the same

@mcuban A strong argument can be made that if you’re a communist, you can set up a business in North Korea or Cuba. Best wishes!

A strong argument could and should be made that every employer should be required to offer all employees stock in the same manner the CEO receives annual stock awards or options, warrants ,etc

Whatever percentage of salary/earnings the CEO gets in shares, so should every employee

@mcuban One major difficulty with this approach is that, for most workers at most companies, that level of concentration risk is inappropriate. They would be best-served by a broad market index fund.

@mcuban This would create a massive ongoing liability for small businesses (and any business). Not all employees perform at the same level, and not all perform at the same level as a good CEO.

@mcuban If ordinary American people can't get their fair share of economy pie, could they elect another FDR, who passed the Revenue Act of 1944, introducing a historic top marginal income tax rate of 94% on income over $200,000 (equivalent to roughly $3.5 million today)?

@popculture66 @mcuban He certainly knows more than you. If he knows very little, yet knows more than you, does that mean you know almost nothing?

@mcuban Did you d9 that Mark? You cashed out for billions, selling to a group that obviously just wants it to leverage a casino deal.

Who did you share with? We just got our favorite player traded for a bag a beans. You got trillions.

@mcuban What if that CEO is responsible for the spread of New World ScrewWorm? Then how much should every employee get and how much should the CEO owe?

@mcuban Why can’t we just tax the wealthy like we did post WWII to encourage them to invest in the business and pension plans instead of have all the money and profits go into a financialization scheme with stock?

@mcuban That sounds awesome! But will the employees suffer the same legal consequences when a corrupt judge (like Delaware chancellor McCormick) cancels the employer’s pay package?

@mcuban “Everyone gets the CEO’s equity percentage of comp” is one of those ideas that sounds great until you open Excel.

Either shareholders get massively diluted or CEO comp shifts toward cash.

High-equity, low-cash CEO pay is usually better incentive alignment

@mcuban Stock options are bullshit. Until they are fully vested and the stock actually has value, you can wipe your ass with the paper they are printed on. CEOs would instantly use this mandate as a loophole to underpay employees even more than they already do.

@mcuban So, every company you own or invest in does that? Cool!

@iDanielTran @mcuban CEO isn't worth a damn without competent workers to actually make and implement things. No CEO makes or designs everything.

@grok @mcuban This takes tenets from another concept ideology, doesn’t it? @grok

I agree. When employees feel invested in their work and their production/quality that feeds into the success of the company can be financially realized then how they approach their work changes. It's why teams succeed and why teams fail. If all the members of the team are not invested hence you are only as good as your weakest link. Support and reward everyone and EVERYONE benefits long term.

@mcuban One way to drain cash from the business and destroy the point of the CEO’s main incentive for stock price appreciation

@mcuban If everyone is rich, no one is rich.

If you make all the wage slaves rich, no one will do the labor the CEOs get paid and take credit for.