[lotsofpulp]

Profit margin does show the picture for how profitable a business is. Employees’ pay, including executive, is irrelevant. They are still employees.

Unless you are claiming malfeasance and that shareholders are being fleeced.

An entire industry with low single digit profit margins amongst multiple of competitors indicates a very optimized business. It means the only way you can reduce prices for customers is to come up with a novel way to execute the business, such as new technology.

Profit margin at businesses that have high barriers to entry and low costs to scale are much higher. See software, real estate, pharmaceuticals, finance, etc. And again, the executive pay is irrelevant since publicly listed businesses have shareholders paying attention to that kind of waste (for the most part).