[silverlake]

> Something happens to companies as they get larger

They went public. My gf is a senior manager at GS (200+ drones in her department). When the company went public the partners could easily cash out. Without as much skin in the game, they could squeeze as much profit (aka bonus) from GS without worrying about the long-term viability. Also, hedge funds are now a more lucrative place to work for many people. So if GS doesn't pay, then a hedge fund will. Another thing is that prop trading made vastly more money than IBanking for the last decade, which changed who got promoted and rewarded. Finally, the company grew very rapidly in the last 10 years and much of it's culture got diluted with all the new people. It's not a bad place, it's just a normal IBank now.

[mattwrench]

I agree that going public hurts companies but not because the partners/founders can cash out. At least in the tech world once a company reaches a certain size, it seems as though founders can liquidate a large portion of their stock pre-IPO; Mark Zuckerberg doesn't need to worry about Facebook's IPO in order to get rich. Rather, I feel that having a somewhat-arbitrary, short-term indicator in the form of stock price is what hurts public companies and their culture much more than the loss of its leaders.

[bpyne]

What you say is IMO correct. But, I think there is something more fundamental. A company cannot function to full potential when beholden to 2 masters - customer and investor - with opposing needs. The customer wants the best product/service possible; the investor wants the maximum ROI.