A good movie about why this is a bad idea is “Other People’s Money” (Danny Devito). Employees will always optimize for themselves, eventually leading to the de

A good movie about why this is a bad idea is “Other People’s Money” (Danny Devito). Employees will always optimize for themselves, eventually leading to the destruction of the company. In power law systems, the enemy of efficiency is local optimization. The very thing that allows the behemoth corporations of today to exist and scale to work is the fact that there are compounding factors working - which is the work of the board. These factors would be less likely in a more locally optimized system, which would naturally result in the case of employee run corporations where the employees are treated fairly. I think it says a lot that many of the most large corporations are the result of this kind of organization structure. It’s clear that this isn’t the best structure for human beings but is probably very much needed by very high level business like the tech industry. Do you really think employee run business would have led to enough free capital and accumulation of wealth to invest billions of dollars in a pair of AR goggles?