Under sandbox assumptions the company org chart is a decoding graph. Message flow through the chart, top to bottom, and each node on any path down has the same discretion in executing the commutative property, constant know uncertainty.
So, a company in a high uncertainty market has a low org chart rank and visa versa. Org charts should be balance and compact, every person hired know how much discretion they have at their post. Nash and Shannon; we skipped the trading pits for Coase. Information never bunches up more than expected. The chart has no loops, double reporting paths.
The subject came up in Marginal revolution on CEO pay. The key is to know many of these companies live in a highly uncertain market, the org chart rank should be low. There are not to many GMs any more.
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