this sounds very similar to a government where politicians are elected (un)fairly. likely, this just presents another set of trade-offs.
However, over the past few hundred years, we've been gradually coming to the collective conclusion that autocracy is inferior to democracy for systems involving larger numbers of people and decisions of larger stakes.
I don't see why that should apply any less to replacing the hierarchical model of companies, where a CEO can walk into any room and say "You're fired," with a (more-)democratic system, than it did to replacing kingdoms, where a king could walk into any room and say "Off with your head," with a representative democracy.
Not really clear that corporations that stay autocratic do much better. As with kingdoms that turn into sprawling empires, all you're left is a bunch of middle management petty kings who the CEO-emperor delegates power to, who might not be much better. Bureaucratic rot sets in.