fins wake:Not so. Pure logic dictates that they actually make more money if you don't pass, as the failures will have an incentive to redo the IE.
Now, in the conspiracy-theory-filled world we live in, PADI HQ does certainly benefit from more instructors paying annual fees, but there are logical inconsistencies in how this translates to the Instructor Examiners gaining automatically by passing examinees ...
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Without instructors, PADI can't sell any cards to divers.
The conflict of interest is pretty clear. Most of PADI's money doesn't come from the instructor's dues - it comes from the diver materials and card processing fees they sell.