Well the CEO isn't being paid with public funds, first of all.
This means that anyone who believes there is a free market economy operating anywhere in the world is gravely mistaken. Arguably, the case of this janitor making lots of money is really not about public ownership at all. The public (via the government) effectively support both private and public sectors almost equally in a lot of cases.
Here's the situation in the UK at least:
http://speri.dept.shef.ac.uk/wp-content/uploads/2015/07/SPER...