Well he's probably right. There should be fixed and immutable company policy for automatic raises and bonuses based on independent quantitative measurements, i.e. inflation, local cost of living, and project metrics. No buts, no exceptions, on both the employer's and employee's side. This is how it works in most government jobs and it makes everything fairer, easier, and more predictable overall.
I happen to work at a government job partially because I saw how my father was treated by the private sector. However, our institution is failing at the requirements that you put forth. The government ministers complained back in 2015 that the independent quantitative measurements weren't accurately capturing employee productivity. As you would expect from Goodhart's law, there certainly were certain employees being underpaid and overpaid, respectively. Thus, the measurements were scraped. However, the bureaucracy has prevented a new set of metrics from being put into place. As a result, I've been working for eight years on what I was told would be a six-month probationary salary because there is literally no mechanism for anyone to receive a raise. Thankfully, recent events are looking like this might change to something sane in a year or two, but the last proposal I saw for someone moving out of the bottom of a salary bracket was: "candidate has won awards from professional bodies in at least three countries across at least two continents".
