But using common sense (which always isn't so good a guide) can you imagine being a board of directors that approved the CEO making 10 percent of profits? You'd have to be an idiot. (Unless he were also a founder and controlled the board)
Not that boards are very popular right now -- but I don't think they're that dumb.
I came up with that figure using an imaginary $10 Billion company paying their execs in the tens of million range, which seems reasonable to me.
Interesting... do you have any citations? (I am genuinely curious, not looking to continue an argument.)