Wow, great solution!

Except that, of course, you're missing the problem. Firing the employee isn't the problem - I don't think it's relevant whether it's done democratically or if the CEO "dictates" it.

The problem is, how to find freeloaders? In absence of objective metrics (which is what the parent raged against), it's an art! Or, it will come down to internal politics, ass-in-the-seat time, popularity contests, ... not that much better than in a non-cooperative company.