"President Obama has set the salary cap at 500,000 for any of the companies that the government bailed out (ie. 10x), and that seems like a reasonable starting point to me."
I don't support the government dictating the wages of any employee of a private company (aside from minimum wage). It shouldn't be a "start". It's the result of a private company borrowing money from the tax payers. I hope it's a special situation that is not repeated.
"You can only live in one house, cruise around in one boat and drive one car at a time. At a certain point, bigger and bigger salaries for top CEO's stop increasing the real quality of life of an executive and instead just becomes a way of keeping track of how much better than the next CEO they are - ie. the marginal utility of every extra dollar a CEO earns approaches zero, but it is in our nature to always want more, so the salaries grow way beyond the point at which further increases are meaningless."
I may just want a billion dollars just because. Neither I nor any CEO should have to justify where they are going to spend our money.
"The same amount of money however, makes a much bigger difference to employees at the bottom end of the pay scale, and would overall improve the standard of the average employee much more, and generally make for happier employees."
Maybe so, but that's up to a private company. Not you.
"I am just questioning the huge disparity between the top levels and the bottom levels, which are by and large maid at the expense of the guys on the bottom rung."
As an employee, you are only paid what someone is willing to pay you. The reason the maid is paid so little is because anyone can do that job. It takes little or no experience or education.
Top level employees have a lot of responsibility. They are also educated and many times risk more than the average employee. You can question the disparity, but it's really up to the company how they are going to spend their own money. If you don't like it, start your own company.