Wouldn't it be nice
to think they are doing this out of some form of enlightened utilitarianism, an understanding that the flow of money is what creates a strong economy, and that hiring 10 over 1, especially where the 1 is normally some toadying MBA who hasn't got a clue how to add real value.
But who knows, maybe they just want a better dividend, but even there that makes more sense than paying management.
This is whole concept that some make good leaders is very flawed, what makes a good business is having the finance to get a foothold and people who actually make the business a profit, and that doesn't really include management.
There was time when it was applicable, when people were badly educated, but now most companies have manager managing experts, and you don't get to become an expert without knowing basic numeracy or how to organise your time, so management without skills seems rather defunct.
In fact, you could probably start to value companies on this basis, just look for the companies where the management is taking a hugely disproportionate share over the actual money makers, and make sure you sell or don't invest there.
And those companies which are lean and mean in management but place responsibilities on their experts, need to make a bit of a song and dance about it, because those are quite tasty prospects for investment.
I think general management is going the way of the dodo, and really management of a company should be by the shareholders, and mechanisms should be put in place to make that simpler to achieve, sure some shareholders won't want to do it, but in many cases it is quite useful to have a bigger say in the day to day running of a company.