Lets put that maximum at $10M/month (or year). Now your counter argument doesn’t work any more.
I think we should be setting these max/min wages as relative values, not absolute values. Otherwise we have to pass laws every time the min wage needs to be adjusted. And we’ll end up with stagnation.
For example, a person’s wage can only be X% higher than the lowest wage of someone a step below them in hierarchy. Including contractors and suppliers so they can’t skirt or find loopholes.
There still might be some haywire incentives that require more thought, but it should hopefully encourage labor to be valued at an appropriate proportion of value. Either everyone makes good money, or nobody does.
Should also probably deincentivize layoffs, stock buybacks, etc. at the cost of shareholder earnings / value.
The people who make that kind of money don’t make it through wages but other compensation.
I am not an accountant but from what I know, taxing stuff like compensation in the form of stocks is pretty hard to do.
I’m not disagreeing with you, the system is just rigged in favor of very wealthy people.