Maybe they should have figured out that their incentive structures were wrong when they had to fire 5000 people over several years. But the very act of firing thousands of people shows that they were discouraging it, strongly.

Did you know that there's a reality tv show based on this premise?

Of course it is. In a company that size where employees work all across the country it's actually very hard for the CEO to find out about sth like this.

He can only create structures (e.g. internal audit team) that are powerful enough to detect it and report it to him.