It's a good idea, particularly for firms that don't need much capital per worker like a small software company or convenience store. I would only add that for

It's a good idea, particularly for firms that don't need much capital per worker like a small software company or convenience store. I would only add that for companies that are stewarding costly production goods - like a steel mill or chip fab - socially rational decisions are much more likely to be made if there is representation of other stakeholders on the board. For example: the regional government and representatives of workers in sectors that use the firm's output or produce its inputs.