There's no reason why a CEO can't be paid as much as a company wants to pay. Usually the owner's of the company are the one's who decide the salary. Should there be an arbitrary cap? No. Should there be some kind of reasonable policy to ensure the welfare of all employees? Yes.

One of the major drawbacks of liberalization is increase in disparities. What a CEO is earning is not entirely owing to his own competence/efforts, it is also due to the economic environment of the nation which simply favours certain sectors and not others.
Thus business houses should be restrained from solely profit maximization and monopolistic policies. They should be made responsible for their social obligations.
Any ostentatious expenditure could be diverted as additional investment in the business to create more wealth and opportunities in the long term or to reduce the prices of goods/services being produced by that business for the good of the common man in the short term.
All money, and not just what is paid as taxes to the Govt., is therefore public money and should be utilized judiciously. (courtesy: TOI)

No salary caps for CEOs. If we cap CEO salaries, the best and brightest CEOs will simply leave to another country where their salaries are not capped.

What should be capped or eliminated are multi-million dollar severance packages, especially to CEOs leaving poorly-performing companies.

We should also encourage more democratically-organized corporate structures, where employees have more of an ownership role.