“It’s the right thing to do.” This is why billionaires like Cuban and Chaudhry have made hundreds of their employees millionaires

Imagine waking up one day and discovering that you are a millionaire. For many employees working under billionaires like Mark Cuban and Jay Chaudhry, this wasn’t just a dream, it was their reality. Both Cuban and Chaudhry have transformed the lives of hundreds of employees by sharing their financial successes.

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After graduating from college, Cuban started his first software consulting business, MicroSolutions. When he sold it in 1990 for $6 million, he made sure the employees got 20 percent of the sale.

Cuban invested in and turned AudioNet into Broadcast.com, a pioneering audio streaming service. In 1999, Yahoo bought Broadcast.com for $5.7 billion, making Cuban a billionaire. But Cuban wasn’t the only one cashing in; 300 out of 330 employees became overnight millionaires thanks to their stock options.

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And when he recently sold the Dallas Mavericks, he paid more than $35 million to employees.

“It’s the right thing to do,” Cuban told Fortune. “No company is built by itself.” He firmly believes that sharing the rewards with his team is a fundamental business principle.

Jay Chaudhry, CEO of cloud security company Zscaler, shares Cuban’s philosophy. In the late 1990s, Chaudhry co-founded SecureIT with his wife, Jyoti, using all their savings to start the company. In 1998, they sold SecureIT to VeriSign, making Chaudhry rich.

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But Chaudhry was not the only one to benefit. His employees held stock options that skyrocketed in value when VeriSign’s stock soared, turning 70 to 80 employees into millionaires.

Fortunately, Cuban and Chaudhry aren’t the only business owners who believe in being generous to their employees. Chieh Huang, CEO of Boxed, an online retailer, goes above and beyond to look after his team. Not only does it offer great benefits, it also pays for its employees’ children to go to college. Huang believes that supporting his employees and their families is an important part of why the company is successful.

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Sara Blakely, the founder of Spanx, became a billionaire when she revolutionized the fashion industry. When he sold a majority stake to Blackstone in 2021, he surprised his employees by giving them two first-class plane tickets to anywhere in the world and $10,000 in cash. While this didn’t make her employees millionaires, it was a sincere gesture.

What do positive actions like these show us? When business leaders share their success with employees, positivity and loyalty are created. Employees who feel valued and appreciated are more likely to be invested in the company’s success, which benefits everyone involved.

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This article “It’s the Right Thing to Do.” Here’s Why Billionaires Like Cuban and Chaudhry Made Hundreds of Employees Billionaires originally appeared on Benzinga.com

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