What you describe, Grizz, is one of the problems of runaway capitalism. With everyone wishing to be "above average," the pressure to continually push for more and more runs away.
This is why most capitalistic economies have put regulations on it. How to best handle this particular issue of runaway capitalism, though, is a very interesting question. The simplistic idea of limits on salaries doesn't seem quite right, but that isn't the only possible response. If economic regulations make it unwise to pay top executives such exorbitant salaries, then companies will reduce the pay because of the economics, not because it is illegal to do so.
Rrhain
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