Currently many successful firms exist where large ownership stakes are separate from involvement in management.
Sure, incentives derived from high equity by founders/âearly employees is a factor in some contexts, like startups. It isnât clear that PFGs couldnât offer similar incentives, for instance by offering high money buyout provisions.
You refer to an ostensibly indispensable âfitness advantageâ without considering that it isnât present in existing firms and similar incentives couldnât be replicated in a PFG context.
Currently many successful firms exist where large ownership stakes are separate from involvement in management.
Sure, incentives derived from high equity by founders/âearly employees is a factor in some contexts, like startups. It isnât clear that PFGs couldnât offer similar incentives, for instance by offering high money buyout provisions.
You refer to an ostensibly indispensable âfitness advantageâ without considering that it isnât present in existing firms and similar incentives couldnât be replicated in a PFG context.