It's not that they do little, it's just that they don't deserve this when the people under them effectively foot the bill in lack of pay raises.
I will probably get downvoted for this but companies don't care about people. They might make it seem like they care but they don't. If a company decides they can perform same or better by improving efficiency and cutting 10% of jobs that is a huge WIN for the business. CEOs are not there to make friends and be kind. Their job is to plan for the future of the company, not Bob slinging code in the back.
CEO often cannot predict exactly what the economy will do and what the clients will do. Their decisions can be based on data but it doesn't mean they can predict the future.
To be frank, I am not saying this is right or wrong. This is reality of business.
Firing people is a way to avoid a company's workforce from stagnating. It lets unproductive people in one environment find a new environment where they can meaningfully contribute. One should never avoid firing someone, instead what's important is ensuring that when someone gets fired that they aren't left destitute or desperate and that there's a path available to them to find new gainful employment.
how does that happen? What's the SOP on that?