Do you think CEO pay cuts should be the normal? By example, Nintendo CEO Satoru Iwata is to take a 50 percent pay cut for five months to atone for the losses. https://www.hollywoodreporter.com/lifestyle/arts/nintendo-ceo-take-50-percent-675228/

Compensation and incentives are essentially about how we distribute rewards and risks.   We rarely talk about the risks and it's clear the CEO has a outsided influence on both the upside and downside.  I think this dynamic can play out at all levels of the organization.  for instance, why is that that employees have to lose their jobs when things go south, why can't everyone just lose a portion of performance?  This doesn't just avoid debilitating layoffs, but also aligns employee incentives to that of the larger organization.