OP's line of thought is pretty clear with the other line:

"bidding for candidates against their other options"

Then he goes on about projects having negative value and also paying employees until value is delivered.

His model is to exploit every possible loophole to make it all work and shift the most risk from management to employee.

Yes, assuming it's all legal (which it often isn't, pushing the limits like this)

Where should the line be drawn ? Pay based on what car I drive because it's less|more expensive ? What school my kids go to ?

I'm almost waiting for salary adjustments base on diet! Hell why not, veggies 'are less|more expensive'?