> The owners/high-level executives have too much control over the process of wage/bonus distribution. It's like passing around a bag with money (profits), and the owners/executives get to pull as much out as they want first.
You know of course that companies frequently lose money in one quarter or one year, and make money another year. So owners may or may not get ANY money this year. Employees get paid every month, precisely the amount they expect. That's because the money bag goes in the opposite direction. First, production employees get paid (payroll). Executives get a portion of their pay. If there's money left, executives get their bonus, which is the other half of their pay. If there's still money left, investments are made to prepare the company for the future. If there's STILL money left, owners get some, in the form of dividends. Dividends (owner's) are, by law, the very last thing that gets paid.