No, the buybacks do. Youre making it seem as if the only way for a CEO to sell stock is if the company buys it back. And it's specifically called a non-cash ex

No, the buybacks do. Youre making it seem as if the only way for a CEO to sell stock is if the company buys it back. And it's specifically called a non-cash expense, because it doesn't affect cash (which salary does). You are correct in that it isn't a free money tree. It's paid for by shareholders. If the shareholders wish to pay their CEO $X, the government has no reason to intervene. It doesn't make the employees any better or worse off.