Yes, it’s a great question. The prevailing mindset is that lower rank employees are held responsible for everything they did wrong AS WELL as things they aren’t responsible of. Today they are letting people go from big tech companies. That includes employees who were promoted or granted bonuses for excellent performance.

But the same doesn’t apply when dealing with executives. If the company slumping - the market conditions are unfavorable. The bad decisions by top executives do not count. Their contracts often specify high bonuses even when the company loses money. Then let’s not forget the “golden parachute”. Regular workers are disposable and do not enjoy any parachute.

But there is another thing that separates between top executives and regular employees. There is an exclusive CEOs club. Once they get membership of the club. they start playing musical chairs. CEO is a lifelong title. When one leaves a company, another one (who was let go from a different place) comes in. They play musical chairs. Lower rank employees from the company (including some with long experience) are rarely promoted to the top. The board prefers someone form outside that usually has no clue about the business. One day they can be the CEO of Home Depot, next they move to Ford, followed by a stint at Macdonald’s. Then a company that makes automobile tires. Anything goes.