What is a potential consequence of reduced central ownership in a company?

Reduced central ownership in a company can lead to a loss of control in decision-making. When ownership is decentralized, it often means that more stakeholders, such as individual shareholders or different management teams, have a say in how the company is run. Each of these parties may have differing interests and priorities, which can complicate decision-making processes.

Without a strong central authority, decisions may become less cohesive and aligned with a unified vision for the company. This can result in slower decision-making or decisions that do not necessarily maximize performance or shareholder value, as various stakeholders may prioritize their own goals over the broader objectives of the organization.

In contrast, increased ownership concentration typically allows for more streamlined decision-making, as fewer individuals or entities are involved, leading to faster implementation of strategies that may benefit the company overall.