You have it exactly right. When I was in business school we did Ben and Jerry’s as a business case, and I remember there was some lame rule like ‘the CEO can only earn 12x as much as the lowest paid employee’, or something like that written into the corporate by-laws. You know, I can respect their principles, because God knows there are sure a lot of idiot CEOs in the world who are overpaid, but there is also some truth to the fact that you ‘get what you pay for’, so they are really only screwing themselves.
And yes, while we had lots of ‘granola people’ at U.T. Austin who said they would gladly take that job, I guarantee you that once they start traveling 90% of the time, never seeing friends and family, and all the other crap that CEOs and top company executives do put up with, they’ll quickly change their tune to “why the hell is the head guy at Hagen Daz flying around in his own corporate jet while I have to fly coach on Valujet?”