@Kasz
No. Private companies don't share profits with investors in the form of equity unless you provide special financing. All companies need capital. Non-profit companies are setup to offer as much as possible without losing money. Their excess goes into improving the business not rewarding their creditors. Whether or not that actually happens in the real world is another story. Kahn's point is that if they ran the prisons as a true non-profit, the motivation would be to provide the safest, best rehabilitation facility possible. That would mean educational programs, counseling, better paid guards, better conditions, etc. Unfortunately these for profit companies are just leaching off the system. It is deplorable and embarassing that we allow it in a modern society.
edit - Also, if you want a quality CEO you have to pay competitively. Most benevolent people are not savvy enough to run a non-profit nearly as effectively as a seasoned executive.
