When there's a high median net wealth, such as in Belgium, Luxembourg, Iceland and Australia. Then capitalism allows for decentralisation. The means of production will be owned by a lot of people instead of just a few.
People can choose which companies they want to support by buying or selling their stocks. Such as Elon musk's Tesla dropping in value due to his shenanigans.
A problem with worker cooperatives and employee stock option plan is that the portfolio of the employee will not be diversified. If their company does badly, then their wealth tanks quite a lot.
It's better that they get quite some money. Have a high median net wealth and thus can diversify their assets. Lower their risk.
The best part about capitalism is that there's no monopoly of labour. In various types of communism, such as in Cuba, the government is the sole employer. Or at least was like this in the past before people wanted more privatisation.
For example doctors would be paid well in Cuba, but nothing compared to other Latin American countries where they could be self employed or employed by various competing hospitals.
Competition is important. Diversification is important. Those are things that capitalism provides.