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Think it has a lot more to do with proximity to those controlling the purse-strings.

Intra-firm compensation is not nearly as "rational" as you are making it out to be.

Is it really proximity to the purse string? Because even large, profitable founder-led tech companies, where founders have full control and motive to run the company efficiently, adopt middle management. And what evidence is there that middle management is unnecessary? The only evidence presented is theoretical critiques from engineers who feel they stand to gain from the removal of management.

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