Star - those are two separate issues - companies are going to pay employees what they need to in order to get people to work at an acceptable level of effort. When I was a partner in a business, we generally paid our people better than just about anyone in our business (salaries and profit-sharing and stock). As a result, we had extremely hardworking employees who were, person-for-person, head and shoulders above other people in the business. We ended up selling the company and the new owners proceeded to mess everything up. None of us (partners or employees) work there any more.
But, as a capitalist (and I make no apologies for that!) once you’re getting optimum performance from your employees, if you’re not expanding the business, the money goes back to the investors - it’s why they put their money in the business to begin with. The problem too many companies make is that they’re focused on the lowest cost employees instead of the best employees. In my experience, hiring the best employees is worth every single dollar, because the company performs dramatically better when you have excited, motivated people.