Here's the question. Should you lock up that much money in feeding the salaries of so few people, or might you be better off with a Jobs like situation - where you set the base salaries, nominal bonuses, and set most of the remuneration based on shares distributed in option plans, which are heavily dependent upon the fluctuations on on the open market? If you opt for this move, this should free up resources which would otherwise be spent on executive compensation, and allow it to be used as resources to feed innovation at the spaces in the company where creativity and invention will have a higher ROI. In other words, freeing up capital not used for executive salaries can be alternatively used as slack resources to generate room for big changes both organizationally and product-wise within the corporation.
This is a classic resource dependency problem outlined by Pfeffer and Salancik. If you would like to drive change throughout an operation, one has to create slack resources that allow a shift from the old ways of doing by creating resource reservoirs that can be directed toward encouraging new ways of behaving and operating. Easy to articulate on a web location. Harder to make happen in the real world.
In looking around my own industry, a good example here is salaries at the University Presidential level. Often, Presidents of such universities are remunerated with much more than a regularly large paycheck. They get an on campus and off campus home. They have chefs, personal assistants, chauffeurs or university cars, police protection, luxury box seats at the stadium, etc... After, say, about 100 to 250K, what does the salary get you in terms of performance at the presidential level (and I know I'm leaving out the presidents executive level cabinet - which would be a fun fiscal case to examine at some point)? The argument from the board may be, well, we get top drawer leadership and this person brings in multimillion dollars in funding for the school, which more than covers the costs of those perks.
The question I raise here is as to if the monies beyond a certain level of salary might not be better spent on developing a pool of resources that can be utilized to generate organizational slack that can invigorate invention, creativity, and lead to new ways of doing in an ongoing way that allows people to break free of the shackles of the long standing tradition or status quo.