No company can maintain that dynamic at scale, though. As you grow, you accumulate people who are good at presenting an image of doing the good work, but they're actually operating adversarially in a way that collects the most rewards with the least effort.
It's not just managers. A lot of ICs treat the workplace like a min-max game, where they are trying to maximize their compensation and minimize the work they do. Every time I mention this, there are comments about how that's actually a good thing because companies have the same strategy, but the people who do this usually screw their teammates more than the company. Big companies don't suffer if random people are slacking off and refusing to do their work, but their teammates who want to get a promotion or build their skillsets are going to suffer the consequences of deadbeat coworkers.
Small companies aren't immune from these problems, but it's so much easier to identify and remove the dead weight in a small company. When you have 20 people in a company, it's clearly obvious when someone isn't pulling their weight. But when you have 100,000 people in a company, a large number of people are going to find ways to settle into obscure roles where their output is hard to measure and they'll coast as much as they can.