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Because the people that set compensation is the board of directors, and they are composed of other executives. They want to set the precedent for themselves.
Correct, also execs have strong bargaining power and entire industry of advisors to advocate for their comp.
This is opposed to wage slaves who are atomized and forced to negotiate for themselves while most industries collude to fix their wage. Many industries share their salary data to third party aggregator who will in turn provide reports that enable companies to fix wages for specific professions/industries. This is illegal but as you might no, government does enforce rules against "legal people" only organics who of "lower quality"
Also, they are all generally good friends, and want to make sure they keep the wealth "where it belongs"