You are correct. I have also made that point in other threads. I should have included in my original post.
Constantly skimming the profit off the top leaves a whole lot less for the actual corporation.
This was the reason my former employer closed: Taxation, regulation and NEVER putting any money back into the operation of the place. But. The top management still continued to pull down multi-million dollar bonuses.
Executives giving themselves bonuses after laying off a significant portion of their work force is unconscionable. Giving failed CEO’s golden or even platinum parachutes is unspeakable.