system
Given the following post, respond as if you're commenting on Reddit:
human
I do not think it makes sense to tie the salary of a university president to the salary of the lowest paid worker. CMV

There was a recent story about how St. Mary's College is considering a policy that would limit the salary of the president to ten times that of the lowest paid worker on campus. While this sounds nice in theory, it does not make sense from a practical standpoint to keep the college competitive, and for larger and more prestigious colleges (nothing against St. Mary's) it would be a *major* mistake to implement this. Why should the president of a large university make a million bucks? Because it keeps them at the University. Private sector businesses can pay a *lot* more for skilled managers, and while working at a university should not be just for the money, having a reasonable financial incentive to attract the best presidents makes sense. If you are not offering somewhere in the neighborhood of what these people would be making elsewhere (or even at another university), you are going to lose your prestige and edge (which is really what most universities care about the most).
gpt
This assumes that salary is the only possible motivator for skilled managers (or skilled labor).

Doctors without Borders doesn't pay well, yet still attracts top-tier talent.

Similarly, contributing to a center of higher learning and being of service to the academic community is often held in high regard by society.  For many skilled managers, the privilege of serving, especially at a well-regarded institution, more than compensates for the lost income.  This also includes skilled managers who do not enjoy the private sector environment, or are attracted to the academic world.

This principle applies to many government workers as well.  There are some very, very intelligent and skilled workers on the government payroll, who could earn a large chunk more in the private sector.  However, because they enjoy the work they do, they do not require the additional financial incentive.

Indeed, it could be argued that these workers are even more desirable; offering a lower or capped salary might weed out "mercenary" CEOs or University Presidents who really don't give a crap about education or the University, only the metrics that determine their paycheck.  The kind of CEO or President who would leave if a higher paying offer came along is a liability, and only as good as the targets the board sets.  A mission-driven University president will work because they truly enjoy it, and may be much more productive and effective as a result.