The Father of Economics Believed That Employees Should Own the Company

Adam Smith, the father of economics, pointed out in his book The Wealth of Nations,

"The directors of such [joint-stock] companies, however, being the managers rather of other people’s money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own.... Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company."

In other words, when ownership is separated from those who manage the company, the managers will inevitably neglect the interests of the owners, leading to imprudent decision making within the company.

(Taken from http://www.ask.com/wiki/Criticisms_of_Corporations?qsrc=3044)