What happens when sales decline? By giving everyone an increase in salary, you're committing to pay that amount for the foreseeable future. If you can't ... then layoffs will happen.
So what if you used a salary + bonus structure? The problem is that firms have been abusing this for years, and employees are wise to it now. "Bonus? Never seen anyone pay on it, so doesn't matter."
From reading, I believe he had too much money in the bank, and too much getting in. So, yeah, we can't keep this stored forever, since the cart's still going up, and we have a lot to spare, let's raaise salaries to something we can keep in our current situation, possibly still storing a little.
If he was dumb enough to just raise to infinite and beyond (The sky is the limit!), I don't believe he would have been so successful until now.
What happens when sales decline? By giving everyone an increase in salary, you're committing to pay that amount for the foreseeable future. If you can't ... then layoffs will happen.
So what if you used a salary + bonus structure? The problem is that firms have been abusing this for years, and employees are wise to it now. "Bonus? Never seen anyone pay on it, so doesn't matter."