Experts exchange...
As a CEO of a company, I care about my workers and my customers. If I didn't, I don't think I'd have many workers, or customers. This is the basis of competition.
Even if I didn't care about my workers, turnover is expensive. Even for something as basic as box unloading, there are costs associated with bringing someone onboard (getting them into your accounting system, making sure they have their documented training, etc. etc. etc.) as well as costs associated with their leaving, and finding a replacement.
These people probably really work for Amazon. I imagine they are being paid by Amazon, just not to stock shelves... I wouldn't call them "fake" workers, since they're doing very useful work for Amazon, really working!
I believe the term you are looking for is investment opportunity. Both BeauHD and msmash want to make sure everyone is aware of the investment opportunities available.
Your statement is accurate and makes sense for a well functioning organization. Unfortunately, small startups do not normally fit this bill.
What happens in a startup is you can give people whatever title you want to make up. Titles are very inexpensive, and easy to change. What probably happened is the founders created a CTO title for someone, impressed them with the title, and then used that and equity (also inexpensive) to avoid actually paying a large number of people with a varied collection of roles. I've actually had this offer, multiple times, for startups that want to save on their web development costs. My response is normally "No, I'm not interested in becoming your CTO so you can save on your web development costs. We can put together a contract, and I can delegate these issues to my team members that focus more on this level of challenge daily."
I've seen someone go from "intern" to "CEO" because of this. It was actually not a good thing, since this woman's expectations were totally unrealistic afterward. It would have made more sense to call her a "marketing coordinator" or "evangelist" but that probably would not have motivated her as much as "CEO." She's actually taken this off her LinkedIn, as I'm sure she realized how crazy this is. It's probably not a good idea to have a student as a C-level executive...
People are motivated by lots of different things. Sometimes those things can be good, and sometimes those things can result in problems later.
I believe this argument should be taken to the limit.
Computers are not intelligent. They only think they are.