Today wealth is created through knowledge. The more effective the knowledge flow in an organization, the more wealth created. Within companies and public work, knowledge flow must always be severely limited. This is because of the control required for public work. Knowledge Leveraging Compensation is a method of organizing the structure of an enterprise so that there is natural alignment for knowledge flow as well as the leveraging and synergizing of knowledge in the enterprise. By definition, some form of Knowledge Leveraging Compensation is inherent to any Mass Privatization enterprise. The end result is similar to a type of royalty system, but it is far more flexible, versatile and powerful. It does not require the tracking, paperwork and red tape of a royalty system. It also does not inhibit information flow the way a royalty system does. In other words, with a royalty system people desire withholding information in order get the maximum royalty for themselves. This withholding of information constipates information flow and produces less gross wealth, individual wealth and in the end more deficits.