I strongly suspect no place would pay 800k otherwise. The reality is these companies cannot simply have 800k positions with well defined criteria - these compensation levels are reserved for people that would be especially painful to replace, and the criteria are rarely cut and dry. You could come up with a bigger hammer to prevent these practices, but in the end the exceptional employees are the only ones to lose - I bet companies would love there to be a blanket ban on large compensation in the industry.