You're missing the point that every pretty much every organization has people hanging on because they need the money, this is incentive to get some of those people to move on, not to eliminate the possibility of employees ever hanging on for a little bit more money.
Actually that was the other point (the one made in the article), which I wasn't missing but was simply not commenting on. The post above mine brought up a second point, which is the one I was questioning as the circumstances between Zappos and Amazon seem significantly different.