[kelnos]

That's not what we're talking about, though. If you suddenly don't have the market you used to, then it makes sense to cut down your workforce to be the appropriate size for the market you do have.

But that doesn't mean it's ethical to then throw money at your executives just to keep them around. If the business is viable with the smaller market and smaller workforce, then the executives should either stick around based on the company's future prospects, or leave. If they want to leave, then perhaps executives of their caliber aren't required to run the company given its new reality. Getting them to stick around by showering them with more money just increases wage inequality.

[kortilla]

“Showering them with more money” in these scenarios is “give them some more stock” to try to offset the 90% of their income they just lost due to the stock becoming near worthless.