I imagine in some large companies depending on how top down there, they don't do it. But I wouldn't present it as a rule.
So how does asking for a raise work. You work with you manager all year. Then all of the sudden you go over his head at the end and talk to his boss about wanting a raise? I have never seen that. Sounds a bit strange.
Anyway, original point still stands. The lowest level boss which does know what you do and sees that you have a $50k higher salary and yet do work that not really $50k extra worth will put a target on your back.