This is a pretty unfair article. The author presents firefox market share (a relative term) on one axis and CEO pay (an absolute term) on the other. The sad reality is that the CEO pay should be a relative metric to tech companies of similar size in the bay area, where Mozilla is based. Or at least US tech companies of similar scale. As the internet has enveloped the globe in the last 10 years, a huge amount of money…
Still it makes no sense to pay people millions of dollars when a company is not doing well financially. In this regards what Iwata did while being CEO of Nintendo during hardship (cutting his salary in half and getting no bonus) is the way to go.
In the case of for-profit companies like Nintendo, the CEO typically owns a ton of stock. If they turn things around, the financial returns to them will be huge – especially compared to letting the company crater.
Steve Jobs took no salary for years while Apple struggled (great!), and still ended up with several billion dollars, mostly from Apple.
That can't happen with Mozilla. If they cut the CEO pay in half, they'll probably quit and go work somewhere else. Then what?
Do you try to hire some other CEO for a tiny fraction of what they'd earn at an equivalent role at a for-profit company? At a time when Mozilla already looks like a sinking ship? Sorry, most folks who are talented enough to have multiple options would choose something else, even if there are "warm fuzzy feelings" for working at a non-profit.