Why not? The employees are letting it happen. People still let the company be profitable.
You have thousands (or more) people doing nothing about it. Why should the executives voluntarily give up their money? It’s called capitalism.
Is it capitalism though? Civilizations and societies of all types and kinds throughout history seem to gravitate to a condition where a tiny wealthy elite rules disposable people. Inequality like this strikes me as more of a corporate feudalism than capitalism. Even in utopian schemes with the best of intentions the flaw seems to be in the division of labor. As in: "I'll divide you guys, and then you guys do the labor."