The problem with executive compensation contracts/plans is that they are rarely tied to anything "real" with regards to service provided to the company. The compensation levels for these CEO's are driven by artificial "market values" that have little or nothing to do with the actual value added, and more to do with what "the other guy" is doing. Not so much in this case, but some of the pay these guys get is absolutely ludricous, and they do little to deserve it. Nice work if you can get it though...
Other than the owner of the company, is any one individual's skill set/knowledge actually worth millions of dollars a year? IMO, no. Only when the company's stock starts crashing do the stock holders pay attention to some of the absurd packages these guys get.