Mark Cuban Wants Tax Breaks for Companies That Give Stock to All Workers

Cuban's tax incentive would work like this: if a CEO receives stock worth 10% of their cash compensation, every employee would need to receive the same proportion of theirs. "So if the CEO gets $100,000 worth of stock because they make $1 million in cash, and the janitor makes $50,000, then they deserve, you know, the same percentage in stock, and that will change the game," he said.

Companies that refuse could face a higher tax rate. "If you don't do that, then your taxes go back up," Cuban said.

When host Sarah McCammon noted that Cuban's own equity-sharing was voluntary, he argued the government could nudge CEOs through the tax code. "You can give them incentives to say, 'Look, if you want that 21% tax rate, then you need to give every single employee the same percentage in stock warrants, options, whatever it may be, of their cash compensation that you give to the CEO,'" he said.

The proposal echoes comments from Elon Musk. In a radio appearance earlier in July, Musk said he has always wanted employees at his companies to benefit from the upside. "I've always had the philosophy that everyone at the company should receive stock in the company, so that they can participate in the upside of the company," he told Texas Gov. Greg Abbott.

SpaceX's rival Blue Origin is also introducing a more generous equity scheme to address internal dissent over its options program. As Business Insider's Tom Carter reported Thursday, there is a catch: employees will forfeit all their stock options if they join a competitor within 18 months of leaving Blue Origin.

Cuban's proposal would require legislation to change the corporate tax rate. The current 21% rate was set by the 2017 Tax Cuts and Jobs Act. A shift to a rate tied to equity distribution would face political hurdles, Cuban's framing puts the idea into the public debate on income inequality.