Limit executive stock options which have been the major cause of soaring CEO pay. Broaden the governance of the corporation by giving shareholders a greater voice. Germany has successfully tried a system whereby workers and shareholders each elect half of the board members. Expand membership on compensation committees to include worker and stockholder representatives. Institute better successor planning for executive replacements so the board of directors would be more prone to fire incompetent CEOs or at least limit their tenure knowing they had a successor ready to take the reigns.
Government can also exercise outright pay controls.