Corporations hope that the right concept will turn things around overnight. This is what you might call the crash-diet approach: starve yourself for a few days and you'll be thin for life.
In confusing stock options with ownership, corporations confuse trappings with substance.
There are certainly valid reasons for taking a company private, and it's also possible that C.E.O.s perform better when monitored by a small number of owners in a private company rather than by the dispersed and often uninterested shareholders of a public corporation.
The typical American corporation is a shareholders' republic the same way that China is a peoples' republic.