Yep, I agree with you. Somehow we all feel that if a guy can come in and "get costs under control" (aka, lay people off) that he should be given a 7 figure bonus. If that's all it took, I could easily be a multi-millionaire.
I worked for a company that was once run by a guy like that. His answer to every problem was to lay some more people off. We once lost a government communications development job and, true to form, he wanted to lay off some more engineers. Engineers, for godsake, and we were an engineering company. We couldn't cut loose with any accountants and admin folks, of course, because they were the ones evaluating the effectiveness of the cost cutting measures. I was a GM and told him I thought he was nuts - it wasn't my division he wanted to slash. But he went ahead anyway and within a year we were effectively out of that business, which only a few years before had been the largest portion of the company's business.