fat chance...maybe the above joke is silly, but no one has "a way of establishing the true magnitude of an individual's compensation."
"Legal" is used here to mean "would stand up in a court of law in the relevant jurisdiction."
Suppose a professional gambler made exactly the same amount as Eric Schmidt per year. This "system" would fine them equally. But the gambler relies on his bankroll as his asset, whereas Schmidt relies on his reputation and personal network.
How can you make this fair?
2) Everyone has a different definition of "fair." Which one are you using?
I merely point out a major caveat.
(2) From the article: "In reality, fairness is not so much about the actual distribution of loot as it is about the psychology of how you feel about it."