The experience I had in 30+ years of computer programming for large banks and insurance companies was exactly what you stated. Risk and effort were not rewarded due to bureaucratized procedures that made reward impossible. Moochers or innocent bystanders would get credit for what you did. When an unqualified lady got a promotion that should have gone to me, I quit on the spot and retired. I have never regretted that decision.
This is one of the big problems with working for a living. No matter the good you do, the recognition and reward for your work often disappears. Mother Theresa said, "Do good anyway," but there also comes a time when a man has to stop casting pearls before swine. Simply put, if you were running a business, and a difficult customer pestered you for extra goods, you might give them to him for a while to keep his business. But your accountant will eventually find you out. You'll have to tell your customer that he can't have any extra, because he isn't paying for it.
Employees are very good at determining what the employer will tolerate. Joe knows that Fred receives the same salary and makes constant mistakes, mistakes that Joe has to correct. Joe realizes that they are paying $50,000 to Fred for X, and they are paying $50,000 to Joe for 2X. The math doesn't lie, and Joe eventually realizes the fair market price for X.
What is Joe going to about it? A couple of books like, "Quit Your Job Now" offer helpful advice to those who will follow it. I'm glad you were able to retire and get out of it. The advice in that particular book was to find another employer who would pay you what you were worth. It does work, although it requires extra effort and patience, as well as the ability to relocate.
LOL, I had exactly this situation occur to me. I was an employee in a small consulting firm, where we might price and accept small jobs ourself. I had a customer fight me on price for a certain job, and I lowered the price slightly, and he took it. Well, he demanded far more attention and handholding even than would have been expected by a normal customer who paid the price I originally quoted. So I was pissed, but I finally made it to the end of the job, after burning twice the man hours I expected. Then the Obama-head comes in and sits my boss and his down for like 45 minutes to snivel about the new lowered price!!! He probably burned half the price of the small job just in that meeting. So, anyway, despite his sniveling, a few months later he comes back with another job. I priced it at what it would be worth it to me to work for the guy, factoring in both the extra man hours and the unpleasant nature of having to deal with the prick. So this time my boss happened to see my price and said "But what if he thinks it's too expensive?" to which I had about 3 complete standalone rebuttals.
1) I quoted what it would be worth it to me to work for the guy, factoring in additional handholding and the unpleasantness of dealing with the guy. Since I had priced it that way, I no longer cared whether he took it or not.
2) The guy's a prick and will probably whine no matter what you charge, so why not make the price fit the whining?
3) For all his caterwauling about our price and service, here he was again with business, meaning one of two things: either the whining is a negotiating tactic, or he's such a dick none of our competitors would work for the guy so he had no choice.
In any of the three cases, the price was fine.