The one I know, it just started out with some people who were all equal co-owners. When a new employee joins, they get the same share as everyone else. When someone leaves, they lose their share. Shares can't be sold, everyone has the same amount. It's a cooperative.
Seems also like a perverse incentive to delay or avoid hiring as well. Every new employee makes everyone else poorer. Unless that one employee is so productive they single handedly make up for lost ownership with increased profit.
It's originally a software agency that later decided to also develop some of their own products, so there's not that much risk. The primary reward for everyone is just their wages.
They're organized at team level, teams have to write business plans that must be approved by people from other teams, teams decide whether to recruit an extra person, and so on.
Large investments (they built a new hq) are voted on by the whole company.
The one I know, it just started out with some people who were all equal co-owners. When a new employee joins, they get the same share as everyone else. When someone leaves, they lose their share. Shares can't be sold, everyone has the same amount. It's a cooperative.