The very premise of this assumes that everyone is aware of what everyone else’s job is including all of their responsibilities, that they can objectively judge how well they do their job, that they will not base their decisions based on personal or identity biases (particularly against protected classes), that they have an understanding or even basic knowledge of company budget and financials, and that they can be trusted to properly weigh the financial health of the company with the relatively value each individual’s contributions and the desire for one’s own personal gain.

I would argue that almost no person in an company bigger than 10 people is capable of most (if any) of these. Not that existing company structures are always great at all of these, nor are they usually incentivized to pay people their true worth, but the system you proposed would likely lead to massive issues in any company. Financial issues, personal issues, etc. Even if a company like this were to survive, you would likely see rampant turnover for women, minorities, young people, and anyone else that is likely to be under paid by the might of the majority that believes they are worth less than their white male seniors. Likewise, the “nice” guy manager that does do his job in the slightest but is fun to hang out with is more likely to get a raise than the serious managers who actually keep the company working and on profitable endeavors, which is likely to lose everyone their jobs when the company is no longer profitable. There are more problems with this, but that should be enough to see the pitfalls here.