Closing the wealth gap: The solution is hiding in plain sight

When an X user recently pointed out the eye-popping increase in billionaires’ wealth since 2015, entrepreneur Mark Cuban, a billionaire himself, responded with his opinion on why, but he urged followers to consider a different question:

“Why are we not giving incentives to companies to require them to give shares in their companies to all employees, at the same percentage of cash earnings as the CEO?” Cuban said. 

It is the right question to be asking. Because while the debate over wealth inequality continues, the solution has been hiding in plain sight for decades.

The top 10% of U.S. households now control 67% of all wealth, while the bottom half holds just 2.5%. The typical American worker approaches retirement with about $4,000 in savings, which is less than the cost of one month in an assisted living facility. That imbalance is not sustainable, economically or socially.

The fix does not require new legislation or another corporate responsibility pledge. It lies in a proven model that has been quietly transforming companies and communities for 50 years: employee ownership.

From Silicon Valley to Main Street

Silicon Valley figured this out long ago. Equity compensation has been the foundation of the tech sector’s innovation economy since the 1970s. Stock options allowed startups to attract world-class talent without paying top-tier salaries, align employee incentives with company performance, and build wealth for workers who might otherwise never own an asset.

Yet outside of tech, broad-based ownership remains rare. Fewer than 7,000 U.S. companies—mostly in traditional sectors like manufacturing, construction, and distribution—operate under an employee stock ownership plan (ESOP). The results, however, mirror the Valley’s success.

Employee-owned firms grow more than 2% faster per year than their peers and are half as likely to go bankrupt. During the 2008 financial crisis, they laid off workers at only one-third the rate of conventional firms. For employees, the impact is just as powerful. ESOP participants hold 92% higher median household wealth, twice the retirement savings, and 33% higher median income than comparable workers.

This is not philanthropy. It is a durable, market-tested strategy that drives growth, resilience, and equity at the same time.

The Timing Could Not Be Better

Today, several powerful trends make this the perfect moment to bring ownership to scale.

A massive generational handoff is underway. Ten thousand baby boomers retire each day, many of them owners of successful small and midsize businesses with no succession plan. Transferring ownership to employees keeps those businesses rooted in their communities, preserves good jobs, and rewards founders with fair market value.

The retirement crisis demands new solutions. With average savings at historic lows, workers need wealth-building tools that go beyond 401(k) plans. Ownership creates an asset base that compounds over time, restoring what traditional pensions once offered.

Labor shortages are reshaping industries. As skilled workers grow scarce, companies that offer ownership will win the competition for talent, not only by paying well but by giving people a reason to stay.

Economic volatility favors resilience. Employee-owned companies outperform during downturns because people at every level have a stake in the outcome. Ownership builds both financial and cultural strength.

Beyond Good Intentions

America has no shortage of programs designed to help workers. What it lacks is awareness and adoption of the ownership mechanisms that allow employees to share in the value they create. As long as labor and ownership remain separated, inequality will continue to deepen.

When employees have an equity stake, their focus shifts from completing tasks to building lasting value. They think like owners because they are owners, and that mindset fuels innovation, strengthens loyalty, and creates a powerful cycle of trust and accountability.

The impact case is clear, and the business case is even stronger. Broad-based ownership builds companies that last. It keeps wealth circulating within communities instead of extracting it, and it turns employees into long-term investors in the enterprise they help build.

The Moment to Act

We are standing on the edge of a once-in-a-generation opportunity to reimagine capitalism for shared prosperity. Employee ownership will not fix every inequity in our economy, but it addresses one of the most fundamental: who benefits from the value a company creates.

Cuban’s challenge should not disappear into the social media ether. It should become a call to action for policymakers, investors, and business leaders to make employee ownership the standard, not the exception.

America does not need another wealth redistribution debate. It needs a wealth participation strategy.

Employee ownership represents capitalism at its best: fair, inclusive, and fiercely competitive. It aligns profit with purpose and ensures that the people who build our companies share in their success. If we scale it now, we can turn today’s inequality into tomorrow’s shared prosperity.

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