I respectfully submit the following link about CEO pay in the area:
http://www.fosters.com/apps/pbcs.dll...S_01/704059845
The article is from 2009 but it mentions the CEO's pay about three quarters of the way down the page... Anyhow, it comes in at less than half of what you've quoted, I'm afraid. Maybe you have a better source for your information - I'm not saying I don't believe you, just that I don't know where you got your information.
Personally, I think CEO pay scale is fodder for a different discussion. Even if it was a million dollars and even if the CEO gave 100% of his pay back, the organization would then be $3million in the hole.