Employee-owned company vs. Corporate Structure

Are you talking about an employee owned cooperative? Employee stock ownership plan? Something else?

It really depends on their governance structure, not just financial ownership. If each employee owns some tiny percentage of shares, it doesn't really affect the governance much.

If it's a one member one vote coop though, employees have power to elect the board who can then appoint the kind of managers they like. In theory.

In practice I think most employees don't really care about all that and just want to collect a paycheck and go home and a small core group ends up running the show unless something goes terribly wrong.

As others have noted, the answer here totally depends on what you're talking about. Employee-owned coops and LLC partnerships and ESOPs, etc all get different answers, and "traditional corporate structure" has a bunch of different meanings as well.

But the other part depends on what you're trying to do with the company; the answers are also different for a software startup seeking investors than for a consultancy, and different for a consultancy than for a grocery store, etc.

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Just take a look at this corporate owned by workers (81,507) https://en.wikipedia.org/wiki/Mondragon_Corporation

I ended up in an employee owned place. Money ran out and wages were traded in for a period for company ownership.

It created a flat org in some ways but also created a separation between old employees and new ones. The real leader was the lawyer trying to get new funding.

When the money never came they folded all first world locations and became an Indian owned/run company and tried to sell in that market. The product tech became outdated after the first iphone so it made sense to go low end

It depends i guess.

Technically many public companies are partially owned by employees - and corporate as hell at the same time.

Clarify the question, it is very vague.

Employee owned is pretty rare. There's some exceptions like where you're encouraged to buy your employer's stock to make them richer.

There's a reason why a union with a presumptive whole crew who could start a competitive business never ever does it. Nobody wants to be the owner.