This is hogwash. Earnings can be worse diluted if a company cannot attract or retain managerial and technical talent in today's intensely competitive environment, argues the author. Everybody agrees that people are important in business . To build a good business, you need to build a good team. To attract and retain good people you need to pay good money.
Some companies are rich, and can pay high salaries without blinking an eyelid.
Others have to think many times before doing so. But it's not easy to judge these things. But if our business grows, we can pay you more. But this doesn't convince the would-be employee. It's not a bird in hand.