Of course they can. This has nowhere near the wealth spreading effects of an IPO though. First of all, most employees do not own shares but rather options. Option-holders do not receive dividends. You must exercise options to become a shareholder and most rank and file people cannot do this without selling the stock at the same time because it requires them to put cash in. The kind of middle class folks Mr. Cuban wants to enrich do not typically have thousands to invest in their employer.

I did this once prior to an acquisition of a company I worked for and lost the money. It's pretty much a stupid move unless you are already wealthy and a founder or controlling exec with better insight and control over the outcome.

Also, when an employee exercises options and then sells the resulting share in a public company, they receive a multiple of earnings. Earnings != dividends but suppose all the earnings in a period were paid out as a dividend (they wont be of course) -- the shareholder will get only that amount whereas if they sell the share, they will receive a multiple often 10-15x or more of earnings. Most people benefit more from an exciting lump sum payout than an unpredictable drip at a time.

Can you elaborate? How might this resolve the issues mentioned in the article?