[nicksbg]

Thanks for reply Eric! I agree, and the problem is in the same way as with countries. Sure, you may have good leader and stability while the founder is alive - but once he goes, everything is ready to go up in flames.

The various gravitational forces within company eventually pull the company apart.

As you said, third way governance is really the key. At the end of the day founders in some cases should become chairman, to ensure that everything is functioning as set by constitution. Going into retirement and enjoying pension/stock options should be more common.