This wouldn't happen if employees rejected cash-based compensation and decided to be founders themselves. Most employees trade risk for higher cash comp, and end up with less upside. This issue is mostly settled by the employment market
Not everyone can afford to take the financial risk of being a founder, and not every business type can be started with low initial capital.
Not everyone can afford to take the financial risk of being a founder, and not every business type can be started with low initial capital.