Imagine you make a major screw-up at work - costing your company $10 million. And let's say that you're just an average employee making the median US wage - $50K, so your little oopsie was 200 times your pay.
I'm sure you can imagine your company saying, "oh well, stuff happens - we'll just cut your pay to $45K so that you don't do it again."
Yeah, right. Where's that unemployment office again?
But if you make $4 billion dollar mistake while making a $20 million salary, you can expect your 10% pay cut to be announced with great fanfare and hailed as a "paying for performance" (see link below)
If you get big rewards for success shouldn't there be big punishment for failure?