Currently many successful firms exist where large ownership stakes are separate from involvement in management.
Sure, incentives derived from high equity by founders/early employees is a factor in some contexts, like startups. It isn’t clear that PFGs couldn’t offer similar incentives, for instance by offering high money buyout provisions.
You refer to an ostensibly indispensable “fitness advantage” without considering that it isn’t present in existing firms and similar incentives couldn’t 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/early employees is a factor in some contexts, like startups. It isn’t clear that PFGs couldn’t offer similar incentives, for instance by offering high money buyout provisions.
You refer to an ostensibly indispensable “fitness advantage” without considering that it isn’t present in existing firms and similar incentives couldn’t be replicated in a PFG context.