Essentially, she is punishing success and hard work. I worked for a company similar in this aspect.
Employee got given tight high pressure deadline. When he made it, he was rewarded by another tight high pressure project. And so on until employee either did not made some or left.
The company had two types of employees: active newcomers and slow everyone else. It is not exactly the same dysfunction, but kind of similar. I think that she severely underestimates what this kind of treatment do with people.