Swiss America's Craig Smith discusses benefit of Jack Dorsey giving 1/3 of his stock to employees

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Will corporate America follow Twitter CEO's lead?

Swiss America's Craig Smith goes on 'Your World' to discuss the benefit of Jack Dorsey giving 1/3 of his stock to employees

This is a rush transcript from "Your World," October 23, 2015. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST:  All right, well, to hear Hillary Clinton and a lot of liberals tell it, a lot of business guys don`t know jack about helping their workers.

Well, they ought to talk then to Jack Dorsey, the head of Twitter, who is giving a third of his stock away, all his shares -- it`s a lot of money -- to his workers.  Have at it.  They deserve it.  So he is doing that.

So, maybe the free market, Craig Smith says, is the solution to this sort of stuff, and not politicians or the government.

Craig, what do you make of this?

CRAIG SMITH, CEO, SWISS AMERICA:  Absolutely.

Jack Dorsey has done a brilliant thing.  He is brilliant in technology.  He is brilliant in business.  And he, quite frankly, is following a model that we have had at our firm for over 20 years, Neil.

We do a quarterly bonus program on our profits quarter by quarter, and at the end of the year, we also provide a profit-sharing plan.  We didn`t need the government incentive to do it.  We didn`t need anybody to -- to force us into it.  And it works great.  And, Neil, I have the highest retention, I would suggest, of any company in our industry.

We just don`t have people leave the firm.

CAVUTO:  That would not surprise me.  And, actually, that, I know as a fact.

But the rap against that argument is that guys like you, guys like Jack Dorsey are rare, that most companies don`t think that way and address this enormous gap between the rich and the poor, which I hasten to add has widened dramatically under this president -- having said that, that the government has to step in and forcibly make what you`re doing the case.

What do you say?

SMITH:  Well, but let me give you the perfect real-world example, Neil.

I just came from a doctor`s appointment, and the girl told me her husband works for a public utility.  Ever since Obamacare has been forced on them, they have too pay more than they ever have for health insurance.  That`s government forcing something.

When you have the government force employers to do what Jack and I are doing, then you are going to have problems.  Now, I happen to believe that corporate America is going to follow this lead of Jack Dorsey, because I know there are lot of small mid-cap companies that do something very similar in the form of a profit-sharing program, a defined benefits program.

CAVUTO:  But what do you, Craig, if you`re not making money?  Obviously, there are no profits to share.  Right?  So, what...

(CROSSTALK)

SMITH:  And indeed that`s the case.

CAVUTO:  OK.

SMITH:  But that is why, in our company, we do a quarterly thing, Neil.  
So, that way, everybody knows they have a job.  They are never going to be laid off.

CAVUTO:  Hmm.

SMITH:  But if we make money, they`re going to make more money.  If we don`t make money, then everybody is going to at least make their salary.

But I think this is a trend, Neil.  And I don`t think the government has to implement it.  I think businesses will do it to retain good people.

CAVUTO:  And the government is hardly one to lecture anyone on financial accountability, by the way.

SMITH:  Boy.

CAVUTO:  But, Craig, thank you very much.

SMITH:  Good seeing you, Neil.

CAVUTO:  All right.

END

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