Changing that up requires a radical redesign of how companies are legally constrained in the US or a cultural change that causes an expectation of worker ownership so that they get a say. For examples look at Germany requiring a representative of the workers on company boards
It's actually a pretty good model, and I wonder why it isn't used for other municipal assets.
ESOPs were invented as a way for owners to cash out. Not really an altruistic thing that works well imho.
The SOLE difference between a non-employee owned company and an employee owned company is who the shareholders are.
Source: personal experience working at multiple employee owned companies
My mind went to DAOs where employees all allocated governance tokens and anyone can propose a new idea and others can use their tokens to vote.
In your model, what happens when you get outvoted?
That's not necessarily common, especially the larger the company gets.
Otherwise trying to do something about it can quickly turn into a "ok, clearly these two people can't work together, I as CEO don't really know this particular person, I do know this C-level person, I think the easiest thing to do here is to remove the one of them that I haven't been working closely with." And then something would only actually happen if, say, there's a pattern over multiple years of several VP Engs (or similar high-profile people) all having the same issues with the same C-level.
1. Co-founder likes to make stuff, build stuff, sell stuff, raise money, etc. but does not like, or care for leading 50+ people. Typically he (always he) keeps the title, a small team of senior or very dedicated people, and do whatever he is actually good at. At the same time, a newly appointed, experienced VP does the actual management of the larger team, while nominally reporting to the CxO. This is a good way to avoid drama while the reality of the situation dawns on the co-founder: his report is doing all the grown-up work. You don’t like that work. It’s CxO type of work… so you shouldn't squat the title any longer. It takes a while, though.
The benefits: the VP has ample time and an incentive to prove they can handle the weirdness of a board, and get promoted to SVP, or CxO when their role gets more obvious. They are easier to replace if they underperform or don’t indulge in the CxO delusion long enough. It’s unfair, but it works and most people end up finding what they need in time.
2. Someone was CyO at the previous company, and was able to coast long enough while that first project crashed and burn. Before it did, that someone was hunted to be a new company to be CyO because… well, they look like they know what they are doing. No one at the new company knows what a good CyO does. So they can continue coasting. And it can hurt so many great people who need support.
I’ve seem both at the same time, and it’s painful to see so many people miss what is the problem.
“But so-and-so it’s really CxO!
— Who cares? VP of x is doing great work
— They fight with CyO all the time
— Yeah, because CyO is incompetent and does nothing…”
Titles don’t really matter: if someone has an inflated one, it shouldn’t make them too dangerous. Lack of feedback does: the CxO gets asked to work on special projects and is happy. The CyO is not told to get his shit together, and everyone suffers.
More often, ICs don't get all the information. It's not about having a clue as much as information asymmetry. All those meetings should imply as much, anyway.
Eventually everyone under him in mass went to his boss and HR and told them flat out he needed to go. And the company did nothing for 18 months. And then just pruned him and the whole division of 25 experienced RF chip designers.
The USA "ideals" taught in school say that democracy and democratic republics are the best forms of government.... yet (almost) all our companies are autocratic dictatorships.
And, the gist also has very strong vibes of Ronald Wright's misattributed John Steinbeck's quote:
“John Steinbeck once said that socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.”
https://www.goodreads.com/quotes/328134-john-steinbeck-once-...
We elect the head of the executive branch. The rest of it is basically run like a bunch of corporations. We certainly don't elect the people who work at the IRS, for example.
This is similar to democratic governments. In no democracy will voters elect the Minister of Energy or Transport or Defense or Labor or the foreign secretary. This is chosen by the elected officials.
shareholders don't have all equal vote. Employees have no vote. Its closer to aristocracy if anything
Do you think US Steel should get to vote on what Ford Motor Company does? That just seems totally backwards.
If you think it shouldn't be a democracy, thats fine, but is just an opinion and not a factual claim.
You are, ofcrouse entitled to your opinion. Classically company consists of employees just like your body is made uo of organs. When you damage them by treating them badly, you damage the company.
In neoliberal idea employees are disposable and company is not harmed when you harm them. Company is a separate entity that lives by itself, like a holy spirit, maybe it posseses the stock market on the 'brand value', i don't know.
The current stunt by Elon musk will show who is right, if Twitter does well when he is done destroying the talent pool, then you are right. If the company combusts, then you are wrong.
Labor unions and strikes.
I eagerly await your examples.
- More money
- Better job security
Like the one taking place here right now
"On October 30, 2022, the Canadian Union of Public Employees (CUPE), issued a strike notice, after the Government of Ontario refused their demands for an 11.7% salary increase alongside other requests for improved working conditions."
They are not after any "change" to how things are done, just a massive 11.7% pay hike every year for the next 4 years.
Again, any example of a strike which was to force the replacement of a C-Level?
Point being strikes typically hit C-levels indirectly, not directly. A short term loss and display of collective power which could be avoided with foresight. Individuals are more often targeted through boycotting.
How about this "strike"?
"The 2019 General Motors strike began September 15, 2019, with the walkout of 48,000 United Automobile Workers from some 50 plants in the United States. Demands by workers included increased job security, gateway for temporary workers to become permanent, better pay and retaining healthcare benefits."
what was the impact to the C-level? how did them demanding job security and better pay relate to them at all?
There is pretty much NO case of union action ever attempting to impact directly or indirectly a C-Level person.
They strike for Benefits, money, job security and that is about it.
Statements like this are always so interesting to me online from the "there's two sides to every story" perspective.
Why not devil's advocate it and try to walk through life maybe not thinking in blanket statements? How can somebody who ruins everything be successful at all in life?
Maybe I just have more to learn...
And as a corollary, flat out stealing ideas/code/whatever. If it's still just a startup, no one (that matters) may have every done a thorough search yet to be sure that the technology provided by the founders is original. Or course it won't survive scrutiny from the press or due diligence from a potential buyer or anything.
A friend of mine worked with a startup where there were three founders and they were all notorious for taking unearned credit. I think at least one was a pathological liar. As time when on, the true origins of everything they "contributed" came out. Depending on how good they were at bs'ing and raising money at least, a couple were were fired quickly and the last one took years to get rid of (a big enough fraud scandal finally went public).
Once in power, it is in fact really easy to stay in power.
As someone who has been with large multi-nationals for a very long time let me give you some examples.
1) "failing up".
Sometimes you cant deal with your manager or the situation except to make them look good, and eventually they get promoted up and out of your way.
2) "Protected class"
Think "nepotism". Let's say that "B" doesn't do well, but he is very close to the "CxO". who in their right mind would fire "B"? We call this a "CLM" - Career limiting move.
Alternatively, lets say I hired my best friend.. How wiling am I to fire them?
If you are the owner/founder, it is really hard to get rid of them no matter what they do (Go read up on WeWorks).
Eventually they land somewhere and it doesn't take long to figure out the deal and then they start working on a strategy on how to move them somewhere else.
Obviously the person i responded to hasn't spent much time with a large org to see this first hand.
This may sound risky. But:
1. If you succeed, you may dramatically improve your working environment.
2. If you fail in a way that damages your job, you probably should have been looking for a way out of there anyway, because he's going to continue to make that a crummy place to work.
Note well: You probably shouldn't try this until you're ready to leave, both emotionally and financially, because you may get fired on the spot.
Occasionally, there will be some useful insights mixed in, but that is rare. I'd suggest rather than trying to make the case independently, find a trusted party, tell them that you have concerns about X, and let them drive the conversation. You may pique their interest, or give them a chance to validate concerns they already have.
One of the privileges of ownership is being able to fuck yourself over by destroying your own stuff, after all.
But it is folly to report wrong-doing to the company. Just leave. The business will almost always close ranks to the superior.
There was a story I read recently, the head of personnel was a woman. A woman employee reported some kind of harassment to her. The company started giving the complaining women bad reviews, whereas before they were good. And they fired her. This was a woman who let another woman know. That woman human resources person took the side of the company.
I myself have been subject to a lot of situations where I was extremely uncomfortable to the point of where I wanted to throw up and leave. I'm a man. All of the people that made me feel this way were women. Talking about porn, their periods, sex life - you name it. And it was so many, not just one woman.
If I complained, they would have to fire 1/2 the female work force at the office. Do you think that there is any way in fluck that they would do this? No is the answer. And I eventually left. Easier to do that than stay there. I don't have the time to be bogged down by crap, I don't want to go to court for 10 years asking for some kind of payout for harassment.
There are virtually no processes for anything which makes him untouchable. Whenever he fucks up, some PM or low level manager is fired due to their "low performance".
Is there anything non C-levels can do about it? Honestly I don't think so, all you can do is avoid the guy as much as possible and assume it's not the kind of company where you want to spend 5+ years.